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IOB: Little chance of further rate cuts by RBI

Indian Overseas Bank said that given the inflation, there’s a little chance of further more cuts

May 24, 2012 4:09 IST | India Infoline News Service
According to Chennai-based Indian Overseas Bank (IOB), there is little chance of further rate cuts by the Reserve Bank of India (RBI).
IOB chairman M Narendra said, the RBI had cut the repo rate by 50 basis points last month to boost growth. After that, IOB brought down lending rates. However, given the inflation, there's a little chance of further more cuts.
The central bank had cut rates considering the slowing down growth. However, inflation which was expected to be at 6.25% is at around 7.32% due an increase in the prices of food items and crude rates strengthening internationally.
Mr Narendra expects that a good monsoon could improve the situation. He also said that the debt recovery from corporates and SMEs (small and medium industries) needs to improve. The industry has also not yet recovered from the impact of slowdown.

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