SBI to raise interest rates

State Bank of India will take a call on increasing base interest rates today or tomorrow, Chairman Pratip Chaudhuri said.

He told reporters here that the asset-liability committee of SBI is meeting today or tomorrow to take a decision.

Chaudhuri said that after the RBI raised key short-term borrowing and lending rates last month, most banks have increased their rates and others are in the process of doing so.

“You can expect most banks to raise the base rates between 25 and 50 basis points,” he said.

To a question, Chaudhuri said he does not expect the RBI to hike the rate further in its quarterly review of the monetary policy on July 26.

“As of now, in our view is it (the rate hike by RBI) will come with a lag… with a gap,” he said, adding that he would be surprised if the RBI indeed raised the rates on July 26.

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