BE/RBI/22/2016
The possibility of a rate hike in December by the US Federal Reserve – the central bank of the United States that controls the country’s money supply – and the expectation of the inflation falling further in India, may give adequate room for the new Reserve Bank of India Governor Urjit Patel to go in for a 0.25% cut in the repo rate (the rate at which RBI lends to banks for a short term) when he unveils his first monetary policy on October 4.
This is expected to get translated into softer lending rate by banks to customers as the busy season sets in.
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