DEPOSIT CRUNCH FORCES BANKS TO RAISE RATES

Even as analysts are forecasting the monetary policy committee meeting this week to vote for another pause with a rate cut pushed to December, banks have been selectively raising deposits and lending rates.

According to SBI chairman Dinesh Khara, markets can no longer look up to the US Federal Reserve for the direction of interest rates. "There is a lot of decoupling that is happening. It is not that US Fed reduces rates and everybody else starts falling. We have seen the Bank of England reduce first followed by Australia. Japan has increased. All the central banks are not in sync," Khara said.

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