Indian bankers are convinced of a stable interest rate regime in the short-term thanks to the favourable geo-political environment, declining oil prices, inflation being under control, a robustly growing domestic economy, ample liquidity in the system and good deposit accretion.
Bankers, who spoke to PTI, point to the above indicators and aver the Reserve Bank of India is unlikely to hike reverse repo and repo rates this month.
The apex bank will, in all probability, wait and watch the evolving global and domestic economic scenario before deciding in January, they feel.
"The rates will be stable for now and I don't expect major surprises," K N Prithviraj, CMD of Oriental Bank of Commerce, told PTI.
There was unanimity on this view with almost all bankers predicting a stable interest rate regime 'in the short-term'.
"We don't expect a rate hike this time around. If there is one, it will most likely be in January when the lagged impact of a tightening monetary policy will be known for sure," said Shubhada Rao, chief economist, Yes Bank.
The busy credit season of October-December would be over by then and the agricultural sector's performance -- post-monsoon -- would also be clearer, she added.
Sushil Muhnot, managing director and CEO of IDBI Capital, pointing to inflation being under control, a prime concern of the apex bank, said "while there could be a 25 bps hike over the medium-term, all indications so far point to a stable interest rate regime."
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