No immediate interest rate hike, says SBI


New Delhi: The nation's largest lender State Bank of India on Tuesday said
it will not hike its lending rates immediately but will wait for further
signals from the Reserve Bank's forthcoming annual monetary policy.
   “Immediately, I do not see a hike in interest rates. We have to wait for
the RBI policy on April 20,” SBI chairman OP Bhatt told reporters on the
sidelines of the Indo-US financial and economic partnership meeting here.
   Last month, the RBI had lifted its repo and reverse repo rates (short
term lending and borrowing rates in that order) by 0.25% each to 5% and
3.75%, respectively to cool off the runaway inflation, which has shot past
the RBI's forecast of 8.5% by March. Wholesale price-based inflation rose to
9.89% in February from 8.56% in the previous month due to increase in prices
of certain food items and fuels.

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