Bhubaneswar: With RBI has reduced Repo rates, Commercial banks are likely to pass on the benefits to the consumers. SBI today indicated that it’ll review its lending rates in view of the rate cut.
“Our Asset and Liability Committee (ALCO) will meet within a week to review the bank’s lending rates and it’ll take an appropriate decision on the issue” said P.K.Gupta, MD (R& DB) here today.
The Reserve Bank of India on Thursday reduced the Repo rate by 25 basis points (bps) to 5.75% from 6.00% earlier. The decision was announced after the end of the Monetary Policy Committee (MPC) meeting today. The decision is in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 % while supporting growth, RBI said.
After the rate cut, EMIs may ease as the banks are likely to transfer the benefit to the consumers by reducing interest rates.