No immediate increase in interest rates in sight: ICICI Bank

ICICI Bank chief Chanda Kochhar sees no immediate increase in interest rates. However, she feels that rates could go up a bit over a year

Ahead of the Reserve Bank of India’s (RBI) credit policy review amid surging inflation, leading private lender ICICI Bank Ltd said on Wednesday that it foresaw no immediate increase in interest rates.

"We have to find a balanced path—the 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 managing director and chief executive officer Chanda Kochhar told PTI.

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

“I am not subscribing to any single view," Ms Kochhar, who arrived at the Swiss resort town of Davos to participate in the World Economic Forum (WEF) meeting, said when asked whether she subscribed to the finance ministry’s view that inflation in India was segmented and limited to the 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 RBI is slated to announce the quarterly review of the monetary policy on 29th January and its task is cut out—to ensure adequate credit to the industry and arrest inflation.

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