ICICI chief sees no rate cut, inflation key target

ICICI Bank Ltd chief, KV Kamath in an interview with Reuters at the New York Stock Exchange said that he did not expect a dip in the interest rates by the Reserve Bank of India (RBI) as inflation is the key target of policy makers.

RBI kept the short-term lending rate steady at 7.75 per cent in the quarterly policy review in January 2008 to deal with the issue of rising inflation. But, the commercial banks were allowed to lower their rates.

Since then, some banks such as State Bank of India have lowered its rates. However, ICICI is yet to review is policy on rate cut, awaiting RBI signals.