Interest rates will not rise sharply in the coming 2-3 months: SBI

SBIAs the investor sentiment is improving by the day and the economy is again moving back to the path of growth, there were discussions of the lending being more expensive for the Indian consumer.

However, India's largest lender, State Bank of India (SBI) has recently confirmed the fact that it does not expect the interest rates to rise very sharply in the coming 2-3 months.

The public sector unit gave the reason being the April-June quarter is a lean period for credit offtake for its forecast. SBI's Chairman O. P. Bhatt recently said that even though, there are speculations of the lending getting more expensive but the system still possess a lot of liquidity and hence the interest rates should not move sharply on an upward trend.

Moreover, Bhatt also said that the bank will wait till the April 20th for the RBI monetary policy review and will decide the loan rates thereafter. The scheme at which the bank gives the concessional first year loan at 8% is going to end by the end of April this year.