New Delhi: State Bank of India today slashed the interest rate on short-term fixed deposits up to 179 days by 0.5 per cent, a move expected to be followed by other lenders.

Interest rate on fixed deposits between 7-179 days has been reduced to 7 per cent from 7.5 per cent, SBI said in a statement. The new rate would be effective from July 18, it said. In case of bulk deposits above Rs 1 crore, the downward revision has been effected in two maturity buckets.