|The banks' chiefs would try to convice RBI Dy. Governor Subir Gokarn to slash policy rates to instill some positivity in investment. The bankers and the regulator would be meeting today ahead of July 31 quarterly review of the monetary policy.
The banking regulator left the policy rates or the cash reserve ratio (CRR) unchanged in the mid-quarter review last month. The meeting chaired by Mr. Gokarn would be attended by chairmen of major banks like SBI, ICICI Bank, HDFC Bank, et al. The bankers would present their views on the liquidity situation and economic growth.
Last week RBI stated it would take a look at the monsoon pattern before announcing any changes in policy rates. The economic growth of the country is 5.3% at a nine year low; while inflation at 7.55% is much higher than RBI's target of 6%. Despite the high inflation, the bankers are positive for a rate cut.
Canara Bank's CMD , Mr. S Raman indicated towards Chinese and European Central Bank cutting policy rates could be an impetus to go for a cut, but maintained inflation would be crucial factor.