RBI May Not Cut Rate In Next Policy Review: SBI

State Bank of India (SBI) Chairperson Arundhati Bhattacharya has said that the Reserve Bank of India (RBI) is unlikely to cut interest rate in the next monetary policy review.

“The fact of the matter is that all the parameters are indicating that there will be further fall in inflation. Between November and January with the base effect it might go up a little bit. But by March it will be well below whatever the glide path that is indicated by the RBI. RBI governor has indicated that he will be data driven… may be by the end of the fiscal (cut in the interest rate by RBI),” she said.

“Base effects will also temper inflation in the next few months only to reverse towards the end of the year. The Reserve Bank will look through base effects,” RBI Governor Raghuram Rajan had said in his monetary policy announcement on September 30.

The RBI is scheduled to come out with its bi-monthly policy announcement on December 2.