Union Bank of India not to raise interest rates soon

Public sector lender Union Bank of India today said it will not raise interest rates for the time being.        

"We are not interested to raise interest rates for the time being," bank Chairman and Managing Director M V Nair told reporters here.        

Nair said that with inflation coming down in the recent weeks and oil prices falling, there is no pressure on interest rates.        

HDFC Chairman Deepak Parekh had recently said that with inflation cooling down slightly in recent weeks, he hoped that there would be no further interest rate hikes even though there was a feeling in the market that the peaking interest rates could go up by another 0.5 per cent.        

"I hope interest rates have peaked. With inflation moderately coming down, I hope there will be no need for a further interest rate hike," Parekh had said.        

The wholesale price index inflation came down three consecutive weeks to close at 12.1 per cent for the week ended August 30 taking cues from fall in food items, including imported oil and fruits, dipped by 0.24 per cent from 12.34 per cent a week ago.