SBI chairman Pratip Chaudhuri in an exclusive interview to Zee Business said that he was not surprised by the RBI monetary policy review as it was a continuation of its old policy.
RBI Governor Raghuram Rajan on Friday had surprised the industry and shocked the stock markets by hiking the short-term policy rate by 0.25 percent to keep "worrisome" inflation under check.
Chaudhuri also said the slash in MSF rate was the right move.
He also said that interest rate on loans is co-related to deposit rate. Repo rate has nothing much to do with the loan interest rate. Bank's base rate or the minimum lending rate is not a function of policy rate. It is a function of bank's liquidity position and ability to meet the deposit and lending situation.