Bankers expect interest rates to remain stable

Public sector banks State Bank of India (SBI) and Canara Bank are expected interest rates to remain soft and stable in the near future as inflation is down and there is ample liquidity with the banks.

"Interest rates are expected to remain stable to down," SBI chairman O P Bhatt told reporters before participating in a meeting of bankers and exporters with Finance Minister P Chidambaram here.

Interest rates have already eased off a bit, he added.

Canara Bank chairman and managing Director M B N Rao, who also heads Indian Banks' Association, said there is adequate liquidity in the system, and with low inflation, interest rates are likely to remain soft and stable. "Inflation being under control, I do not see any reason for interest rates to go up," he said.

High global oil prices are a cause for concern and should be watched carefully, Rao added.