The country's largest lender State Bank of India (SBI) Chairman CS Setty on Monday said the rate hike cycle may impact credit demand from consumption or discretionary segments, according to news agency PTI. 

SBI expects 50 basis points rate hike in December

The Reserve Bank of India (RBI) had hiked its benchmark lending rate or repo rate by 25 basis points to 5.5 per cent earlier this month. This was the first rate hike in nearly four years. The apex bank also shifted its policy stance to calibrated tightening from neutral, with the RBI Governor Sanjay Malhotra stating that rate cuts were off the table in the near term, indicating further monetary policy tightening.