SBI chief sees RBI raising repo rate: Media Report

SBI chief sees RBI raising repo rate: Media Report
The chairman of India's largest lender State Bank of India said Reserve Bank of India (RBI) could raise the repo rate—the rate at which central bank lends to banks—at its monetary policy review of July 30, according to a media report.

SBI chairman Pratip Chaudhuri, in an exclusive interview with Bloomberg, said that "As of now, the effective repo rate in India is 10.25 per cent and CRR is 4.25 per cent. What is de facto now may become de jure."

His statement came after RBI raised bank rate and marginal standing facility rate to 10.25 per cent from 8.25 per cent on July 15 and also capped the funds that banks could borrow from central bank.

Chaudhuri, who earlier argued with RBI that its liquidity tightening measures were not transparent, also contradicted most of the economists who think that central bank will maintain status quo on July 30, leaving all the key policy rates unchanged.

Read more about: rbi, repo rate
Story first published: Tuesday, July 30, 2013, 9:20 [IST]
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