The Reserve Bank of India (RBI) today said that it would ensure a benign and stable interest rate regime to safeguard the common man''s interest as well as ensure adequate liquidity in the system. "The RBI''s effort is to ensure a benign and stable interest rate regime ... It is for ensuring adequate liquidity in the system.
We are trying to keep interest rates benign," Reserve Bank Deputy Governor K C Chakrabarty told reporters.
The banks, particularly in the private sector have to lower the lending rates in the period ahead in the face of high competition in industry, Chakrabarty said on the sidelines of the Skoch BFSI summit being held in Mumbai.
Moreover, he said that the individual conditions of banks and the inflationary situation will determine whether there will be any cut in lending rates by the banks.
He also added that if the cost of funds remains high in the system, banks tend to hike their lending rates.
Regarding the credit growth, he said that credit outflow is likely to boost in the coming quarters due to the signs of recovery in the economy. The apex bank will ensure adequate liquidity in the banking system, he said.
We are trying to keep interest rates benign," Reserve Bank Deputy Governor K C Chakrabarty told reporters.
The banks, particularly in the private sector have to lower the lending rates in the period ahead in the face of high competition in industry, Chakrabarty said on the sidelines of the Skoch BFSI summit being held in Mumbai.
Moreover, he said that the individual conditions of banks and the inflationary situation will determine whether there will be any cut in lending rates by the banks.
He also added that if the cost of funds remains high in the system, banks tend to hike their lending rates.
Regarding the credit growth, he said that credit outflow is likely to boost in the coming quarters due to the signs of recovery in the economy. The apex bank will ensure adequate liquidity in the banking system, he said.
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