Hope RBI will roll back steps once ` stabilises: SBI
17 July 2013 10:37 PM GMT
State Bank of India (SBI) Chairman Pratip Chaudhuri said on Tuesday that the liquidity tightening measures announced by the RBI on Monday night are temporary and expressed the hope that they would be rolled back once the rupee stabilises.
'These measures are temporary, to calm down volatility. We are not taking that these measures will be long-term. I think once the rupee stabilises, these steps should be largely rolled back,' observed Chaudhuri. On the impact of the RBI measures on interest rates, Chaudhuri said, 'The impact on loan growth depends on how long these measures stay. Deposit rates do not have such a close correlation with the money market.'
'The RBI action is towards the forex side of the market and to contain volatility in the rupee,' said Bank of Baroda Chairman S S Mundra, adding that it would be too early for the RBI to change its policy stance. RBI is scheduled to announce its first quarter monetary policy review on July 30.
UCO Bank Chairman Arun Kaul said that the RBI steps are a temporary measure and it has to wait for some more time to decide on the impact of this move.
'The objective of the RBI action is to compress liquidity. The implications are the same as a repo rate hike. The Reserve Bank of India has opted for that time which is slack in terms of credit demand,' noted Kaul.
'These measures are temporary, to calm down volatility. We are not taking that these measures will be long-term. I think once the rupee stabilises, these steps should be largely rolled back,' observed Chaudhuri. On the impact of the RBI measures on interest rates, Chaudhuri said, 'The impact on loan growth depends on how long these measures stay. Deposit rates do not have such a close correlation with the money market.'
'The RBI action is towards the forex side of the market and to contain volatility in the rupee,' said Bank of Baroda Chairman S S Mundra, adding that it would be too early for the RBI to change its policy stance. RBI is scheduled to announce its first quarter monetary policy review on July 30.
UCO Bank Chairman Arun Kaul said that the RBI steps are a temporary measure and it has to wait for some more time to decide on the impact of this move.
'The objective of the RBI action is to compress liquidity. The implications are the same as a repo rate hike. The Reserve Bank of India has opted for that time which is slack in terms of credit demand,' noted Kaul.
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