First bi-monthly review of the economy 2015: RBI keeps policy rates unchanged
Q. In the first bi-monthly policy review for 2015-16, Reserve Bank of India kept the policy rate ____.- Published on 31 Jul 15a. Changed
b. Unchanged
c. Increased
d. Decreased
ANSWER: Unchanged
Meanwhile the RBI governor nudged banks to lower their lending rates, and rejected their contention that the cost of funds remains high. Earlier on 7th Apr’15 Chiefs of major banks-SBI, ICICI and HDFC had said that lowering of interest rate will not be possible just as yet. Major Banks including the State Bank of India, HDFC and ICICI Bank have announced cut in their lending rates after RBI governor Dr. Raghuram Rajan expressed strong disappointment over non-transmission of policy rates. India’s biggest lender, the State Bank of India has lowered its base lending rate by 0.15 percentage point to 9.85 per cent. The new rate will be effective from 10th April. The private sector HDFC Bank has cut lending rate by 0.15 per cent to 9.85 percent effective from April 13 while the ICICI Bank announced cutting base lending rate by 0.25 percentage point to 9.75 percent.
