No deposit rate hikes for 2 3 months: SBI Chairman C.S. Setty explains why
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓State Bank of India Chairman C.S.
- ✓Setty said banks will not hike deposit rates for two to three months.
- ✓He explained that excess liquidity in the system removes the need for immediate changes.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Today
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
State Bank of India Chairman C.S. Setty expects banks to hold off on raising deposit rates for the next two to three months, as excess liquidity in the banking system reduces the immediate need to compete for deposits.
“I believe that in the next two-three months, there may not be any rate action on deposits because we have sufficient liquidity in the system,” Setty said on Thursday, a day after the Reserve Bank of India raised the repo rate by 25 basis points to 5.50%.
The RBI’s October 7 decision marked its first rate hike in nearly four years and was accompanied by a shift in its monetary policy stance from neutral to calibrated tightening. The move has raised expectations of further rate increases as inflationary pressures build.
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