Speculations are being made that in this monetary policy review the policy rates may be lowered. The largest lender in the country, State Bank of India has also acceded to it, which has further raised the hopes.
The Managing Director of SBI, Mr. A. Krishan Kumar said, "Possibly, I think RBI Governor has gone on record that there could be some softening of the policy measures in future. But what form of softening is to be seen. I expect about 25 basis points (interest rate cut)."
It is since March 2010 since the policy rates have been witnessing a continuous hike. RBI was hiking the policy rates in an attempt to rein the inflation rate which was well above limits. Now, as the inflation rate is at satisfactory level, the policy rates may witness a fall.