State Bank of India Chairman O. P. Bhatt on Wednesday said he expected the Reserve Bank of India to raise its key policy interest rates by at least 25 basis points in the forthcoming quarterly review on January 25 to tame inflation. “Conventional wisdom says that there should be at least 25-basis point hike in the interest rate,'' Mr. Bhatt said on the sidelines of the SBI-Bharti Airtel event here. “My personal view is that with things going on in the economy, if you look at what has happened to the stock market, if you look at uncertainty and concerns, if the interest rate is hiked at this point of time they might add to problems,'' he said. “If you look at inflation, if the interest rate is hiked at this point of time it would not dampen inflation. My personal view is that the interest rate can be hiked any time,'' he remarked.
NEW DELHI, January 12, 2011
Updated: January 12, 2011 22:05 IST
‘RBI likely to raise key rates'