close

News WrapGet Handpicked Stories from our editors directly to your mailbox

Possibility of an RBI rate cut tomorrow, say Chanda Kochar and Keki Mistry

Possibility of an RBI rate cut tomorrow, say Chanda Kochar and Keki Mistry
Chanda Kochar says "If we look at the inflation rate, monetary policy rate and deposit rate, there is possibility of repo rate to go down in the upcoming policy." Photo: Reuters
Written By: ZeeBiz WebTeam
Updated: Tue, Dec 06, 2016
10:37 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Mobile app for currency notes identification: Here's what RBI plans Mobile app for currency notes identification: Here's what RBI plans
Jalan Panel likely to recommend Rs 50,000 crore transfer from contingency fund Jalan Panel likely to recommend Rs 50,000 crore transfer from contingency fund
Debt market outlook: RBI coming out in support of Banks, NBFC creates bullish future for bond yields, say experts Debt market outlook: RBI coming out in support of Banks, NBFC creates bullish future for bond yields, say experts
Rs 3800 crore PNB fraud: Another Punjab National Bank scam reported! Details here Rs 3800 crore PNB fraud: Another Punjab National Bank scam reported! Details here

A revision in rate cut is expected by RBI Governor Urijit Patel-led Monetary Policy Committee (MPC).

Chanda Kochar, Managing Director and CEO of ICICI Bank said told Zee Business, "If we look at the inflation rate, monetary policy rate and deposit rate, there is possibility of repo rate to go down in the upcoming policy."

Similarly, Keki Mistry Vice Chairman and CEO of HDFC said, "One more rate cut is possible, we cannot say that it will happen with the same degree of certainty but there is still a possibility of 0.25% rate cut as inflation is under control. I do not see any reason that inflation may go up further, it is  likely  to be under check, hence will give RBI the ability or freedom to cut rates."

RBI is set to announce its fifth bi-monthly monetary policy on December 07, 2016. 

Presently, the policy repo rate under the  liquidity adjustment facility (LAF) is at 6.25%, while reverse repo rate at 5.75% and the bank rate to 6.75%. 

During the month of October  2016, India's consumer price index (CPI) inflation rate eased at 4.2%, which supported RBI in providing a 25 basis point rate cut in the previous policy.