Banks' association suggests rate hike pause to RBI

Indian lenders have suggested to the Reserve Bank of India (RBI) to pause its rate hike cycle.

They also urged for a clear forward looking statement on interest rates at the policy review next week, said Indian Banks' Association (IBA) Chief Executive K Ramakrishnan on Monday.

Select bankers led by the bankers' body met RBI Deputy Governor Subir Gokarn at a meeting to give their views.

Providing their outlook on interest rates, credit and deposit growth, economic growth, bad loans and other macro-economic parameters ahead of the first-quarter policy review due on July 26.

The RBI has raised rates 10 times so far since March 2010 to combat sticky inflation.