RBI may lower its benchmark interest rates in the coming months as inflation has eased, pursuant to which banks may also lower their rates to some extent to pass on the benefit to customers, top banker Chanda Kochhar said.
“With inflation easing, I think that we would see policy rate cuts in the coming months,” ICICI Bank MD and CEO told PTI.
Kochhar, said that the central bank has already in its last policy statement, indicated monetary policy easing in the fourth quarter.
“The RBI has also been taking steps to ensure that liquidity is made available in the system. Wholesale term deposit costs for banks have also eased in the last few months,” she said.
Kochhar, however, added that the demand deposits have been under pressure for the system.
“While we would expect lending rates to come down as policy rates are eased, the extent of rate reductions by banks will also depend on the level and composition of deposit growth, the funding costs of banks and the demand for credit in the system,” she said.