No immediate increase in interest rates in sight: ICICI

I / Davos January 27, 2010, 13:27 IST

Ahead of the Reserve Bank of India’s credit policy review amid surging inflation, leading private bank ICICI Bank today foresaw no immediate increase in interest rates.

"We have to find a balanced path -- Right balance between controlling some of the challenges that may come (and) at the same time (ensuring that) growth momentum does not get diluted," ICICI Bank CEO and Managing Director Chanda Kochhar told PTI.

She, however, felt that interest rates, which are at present ruling at the lowest in about five years, could go up a bit over a year’s time.

"No I am not subscribing to any single view," Kochhar, who arrived at this Swiss resort town to participate in the World Economic Forum meeting, said when asked whether she subscribed to the Finance Ministry’s view that inflation in India was segmented and limited to food sector or the  RBI’s concern over inflationary pressures.

The Finance Ministry has voiced the opinion that there was no need for the RBI to increase the key rates that could impact the banks’ lending rates.

The Reserve Bank is slated to announce the quarterly review of the monetary policy on January 29 and its task is cut out — to ensure adequate credit to the industry and arrest inflation.