Banks hike credit rates

ICICI Bank8212;a leading player in the home loan segment8212; has decided to wait-and-watch before taking a call on the interest rates following an increase in the provisioning requirements on the standard assets, effected in the RBI credit policy. 8216;8216;Our interest rates always move on the basis of impact on cost of funds,8217;8217; ICICI executive director Chanda Kochhar told reporters here.

Reddy-speak

Discounting speculation that inflation was being kept under artificial check due to political compulsion, the RBI said its monetary policy was purely focussed on financial markets, and political and economic cycles were two different things. 8216;8216;Over several years, we have observed that economic cycles may not have much to do with political cycles. For monetary policy, financial market expectations are more important,8217;8217; RBI governor Y. V. Reddy said at a select media conference here.