SBI, ICICI see more rate cuts in future as inflation easing

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New Delhi, Nov 16 (UNI) Country's two major banks, SBI and ICICI, today expressed hope of further interest rates cut in the near future as inflation rate touched single digit level at 8.98 per cent.

Talking to reporters on the sidelines of an event, State Bank of India (SBI) Chairman OP Bhatt said there is significant headroom for more rate cuts as inflation rate eased to single digit.

''But, we cannot say when and how soon the rates will be slashed,'' he added.

The country's largest lender has slashed its prime lending rate (PLR) by 75 basis points to 13 per cent with effect from November 10 and will reduce the deposits rate by 50 bps with effect from December 1.

Meanwhile, speaking on the sidelines of India Economic Summit, ICICI Bank Chief K V Kamath said the interest rate is expected to ease by two to three per cent in the next three to six months, provided the inflation rate continues to move southwards.

''Inflation has fallen to single digit of 8.98 per cent is a good news...if it continues like this, there could be another cut of 200-300 basis points in next 3-6 months,'' Mr Kamath said.

The industrial output growth has slowed to 4.8 per cent in September and it calls for further interest rate cuts to propel the economy.

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