Lower lending rates likely post RBI policy action: BofAML
According to Bank of America Merrill Lynch (BofAML), the global financial services major, a reduction in lending rates by 25 bps before the busy season starts in October is likely to give loan demand a leg-up.
Given the Reserve Bank's "dovish" policy move, banks are expected to cut lending rates by 25 basis points, which in turn is expected to push up credit offtake, says a report.
According to Bank of America Merrill Lynch (BofAML), the global financial services major, a reduction in lending rates by 25 bps before the busy season starts in October is likely to give loan demand a leg-up.
"On balance, we second Governor Urjit Patel's view that banks should cut lending rates by 25 bps before the industrial 'busy' season starts in October," BofAML said in a research note.
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