Reserve Bank of India should cut interest rates: SBI chairman

Reserve Bank of India (RBI) should cut interest rates: SBI chairman Pratip Chaudhuri.

The State Bank of India (SBI) has suggested to the Reserve Bank of India (RBI) to lower its key rate – cash reserve ratio (CRR) and repo rate by 50 basis points, its chairman Pratip Chaudhuri said on March 16, 2013.

Pratip Chaudhuri SBI CMD“At present, the CRR is 4 per cent. It should be reduced to 3.5 per cent and the repo rate, which is at 7.75 per cent, should be reduced to 7.25 per cent. This would result in lowering of interest rates on all loans, which would boost the economy,” said Chaudhuri.

The RBI is to come up with its monetary policy review on Tuesday and all eyes are on the central bank which is widely expected to cut rates to propel growth.

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