SBI Chairman CS Setty sees discretionary credit demand moderating, expects 50 bps rate hike in December

SBI chairman CS Setty expects higher interest rates to moderate credit demand in rate-sensitive sectors, particularly discretionary spending. The bank forecasts another 50 basis points repo rate hike in December, followed by a pause. Setty said he sees no system-level concerns over retail asset quality, though highly leveraged households may face pressure.