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Interest rates to stabalise after March says PNB

Punjab National Bank estimates that interest rates are likely to stabalise after March next year.

Apnaloan.com Research Bureau

05 Sep 2008

Punjab National Bank estimates that interest rates are likely to stabalise after March in 2009.

The periodic increase in repo rate and cash reserve ratio (CRR) by the Reserve Bank of India (RBI) to control inflation has led to hardening of interest rates.

The RBI increased the repo rate by 50 basis points and CRR by 25 basis points in its monetary policy review on July 29.

Following this, most pubic-sector banks increased their benchmark lending rates to 14 per cent.