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Banks see rate cut by March

New Delhi, Aug. 7: Bankers expect the Reserve Bank of India to cut policy rates by the end of this fiscal and feel a GDP growth of 5.5 per cent is achievable, Chanda Kochhar, chief executive officer and managing director of ICICI Bank, said.

“Some work has started in coal allocation and logistics movement. Clearly consumer confidence is coming back … passenger car sales are picking up and the manufacturing index is moving up. A 5.5 per cent GDP growth is achievable,” said Kochhar.

She felt the signs indicate that the worst for the economy was over.

“We are just at the beginning of positive signs… a lot could really depend on fiscal consolidation. But yes, I think the economy’s bottoming out is over,” Kochhar said at an interactive session organised by the Young Ficci Ladies Organisation, which was chaired by Abarna Jain.

Kochhar said she expected the RBI to cut rates by the end of this fiscal.

“It is going to be the fag end of this fiscal because the RBI has made it very clear that they are looking at the inflation target in the medium term... to control inflation there are a lot of steps that we need to take on the supply side as well. So we do have to wait a couple of quarters,” she said.

She said the new government needs to do a lot to de-bottleneck infrastructure projects and cut red tape.

 
 
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