Rate cut News

As per the data by the official data, the retail inflation in November was at 5.48 per cent as compared to 6.21 per cent logged in October, falling in line with the Reserve Bank of India's 2-6 per cent comfort band.  

Lending rate cuts are key to economic growth recovery and banks should lower rates by 25 bps before the start of the busy season in October to accelerate reforms momentum, says a report.

Public lender Bank of India has reduced interest rate on savings bank accounts by 50 basis points to 3.5 percent on deposits of up to Rs 50 lakh.

The note said that inflation risks are being "overdone", and a cool-off in price rise will be one of "compelling factors" that will make the RBI cut rates.

Given the Reserve Bank's "dovish" policy move, banks are expected to cut lending rates by 25 basis points, which in turn is expected to push up credit offtake, says a report.

The SBI on Tuesday said its 50 basis points (bps) rate cut on savings accounts can lead to savings of Rs 2,000 crore over one year in case status quo is maintained and that there won`t be huge outflows due to rate cut.

Pureplay mortage player HDFC on Monday followed suit of its rivals and lowered new low-cost home loan prices by 15 bps to 8.35 percent for women borrowers and by 10 bps for men, thereby matching the rates offered by SBI last week and ICICI Bank earlier in the day.

Bringing cheer to customers who have raised loans prior to April 1, 2016, the largest public lender State Bank of India (SBI) cut its base rate by 15 basis points (bps) to 9.10 per cent with effect from April 1, 2017.

The Bank of England on Thursday ramped up its UK economic growth forecasts for the next three years, despite Brexit storm clouds on the horizon.

Joining the rate cut bandwagon, Bank of Baroda on Thursday lowered its lending rates by up to 0.75 percent -- which will lead to cheaper home and corporate loans.  

Joining the rate cut bandwagon, HDFC Bank, Wednesday lowered its lending rates by up to 0.9 percent -- which will lead to cheaper home and corporate loans.  

The annual rate of inflation, based on monthly WPI, stood at 3.15 percent (provisional) for the month of November, 2016 (over November, 2015) as compared to 3.39 percent (provisional) for the previous month and -2.04 percent during the corresponding month of the previous year. 

The meeting on Tuesday will be the second of the MPC chaired by the Reserve Bank of India Governor Urjit Patel.

Faced with a spurt in deposits following demonetisation, banks are unlikely to lower interest rates as the Reserve Bank soaked up additional liquidity in one stroke by imposing 100 percent incremental cash reserve ratio (CRR).

Flush with funds, Punjab National Bank (PNB) on Saturday trimmed interest rate on fixed deposits by up to 0.25 per cent in line with competition.

Softening food prices helped ease retail as well as wholesale inflation in October, raising hopes that RBI may go in for another rate cut in its monetary policy review next month.

In the second consecutive month of decline, wholesale inflation eased to 3.39 percent in October as food articles, led by vegetables, witnessed softening of prices. The wholesale price-based inflation, reflecting the annual rate of price rise, in September stood at 3.57 percent. In October 2015, WPI inflation was (-)3.70 percent.

The Reserve Bank is expected to maintain a status quo in the upcoming December meet and will go for a 25 bps rate cut each in its February and April policy review meeting, says a Bank of America Merrill Lynch report.

State-owned Bank of Baroda on Saturday reduced the marginal cost of fund (MCLR) based interest rates by 0.10 percentage point across different tenors with effect from November 7.

Setting up a tempo for other lenders to follow, HDFC and private sector lender ICICI Bank on Thursday cut home loan rate by 0.15 percent.