O P Bhatt says interest rates not to increase immediately

With the Reserve Bank of India increasing major policy rates in the 2^nd quarter of monetary policy review, the biggest lender in the country, State Bank of India has said that it will not increase interest rates before 3-6 months.

O P Bhatt, SBI Chairman said, “I am not seeing the possibility of any immediate change in interest rates”.

But he added that there is a likelihood of increase in interest rates if the economic condition changes.

He also said that there might be a 25 basis points increase in base rate if the economic condition changes.

Consequently lending rates are also expected to go up.