ICICI sees further cut in interest rates as inflation slides

The country's largest private sector lender, ICICI Bank, sees further softening of interest rates with inflation sliding to a 14-month low of 3.92 per cent.

"Clearly there is a downward pressure on interest rates. There is further scope for rate cut," ICICI Bank Managing Director K V Kamath told reporters on the sidelines of a CII function here today.

Noting that inflation was inching towards two per cent mark, he said, home loan rates too are expected to slide further. "In the near term, mortgage rates will come down to single digit... Some of them already are" (in single digit), he added.

Inflation declined to over 14 months low of 3.92 per cent for the week ended February 7.

Indicating further reduction in rates, RBI Governor D Subbarao too had said in Tokyo yesterday, "There certainly is room for cutting rates. The question is whether we should cut rates, when we should cut rates and by how much we should cut rates."