RBI is likely to announce further interest revision in its coming policy revision meet on Saturday. The apex bank is likely to cut key interest rates to ease the liquidity situation and propel economy. Banks are preparing to revise home and auto loans in a response to the RBI's move. They said that more infusion of liquidity would help to cut the lending rates to boost demand and hence propel economic growth. 

The RBI has reduced the Repo rate from nine per cent to 7.5 per cent so far. But banks have not changed Reverse Rapo rates. Rapo rate is the rate at which the banks borrow from reserve bank while Reverse Rapo rate is the lending rate of banks to apex bank. Bankers are optimistic for further cut in cash reserve ratio (CRR) to give enough room for interest cut by the banks.  

 Banks have recently deposited around Rs 45,000 crore surplus funds with the RBI at 6% reverse repo rate. One percent decrease in cash reserve ratio releases around Rs 40,000 crore in the system. The apex bank has cut the CRR by 3.5 percentage points to 5.5% since the beginning of financial crisis. 

Ficci secretary general, Amit Mitra, while commenting on the matter, said the additional funds should be invested in the manufacturing sector to tame slowdown. PNB Chairman, K C Chakrabarty hoped that RBI would surely cut interest rates to boost demand and ease liquidity conditions.