No change in rates for now: Kamath

Special Correspondent

NEW DELHI: K. V. Kamath, President, Confederation of Indian Industry and CEO, ICICI Bank, on Thursday said there are no signals from the market about change in interest rates at the moment, even though Reserve Bank of India (RBI) is sucking out over Rs. 27,000 crore from the system.

“At this point of time, I think no change (in interest rate) is seen,” he said while speaking to reporters at a CII function.

Further dwelling on interest rates, Mr. Kamath said bankers and market players would need signals as to what was the true level of interest rates and there were indications to say that interest rates would change at this moment.

The liquidity was quite “good” in the market and hence it is the market which would determine interest rates now, he added.

Impact of high oil prices

“Given drivers of our growth, impact of oil in day-to-day life is getting less. This is not to say that it is not a pain but pain could be borne,” he said.

“Five to ten per cent change in global crude oil prices from this level would not make for a dramatic increase in the level of suffering that we faced when prices went up from $35 a barrel to over $120,” Mr. Kamath said.

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