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Sat May 17, 2008

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NEW DELHI, May 09, 2008 (AsiaPulse via COMTEX) -- Interest rates are expected to remain stable for now despite the Reserve Bank of India squeezing money supply through a hike in percentage of cash that banks must keep in reserve, ICICI Bank (BSE: 532174) Managing Director and CEO K V Kamath said on Thursday.

"At this point of time I think no change (in interest rate) is seen," he told reporters on the sidelines of a presentation by renowned economist C K Prahlad.

Kamath said at this point of time the market has not judged which way interest rates are going, but if yield on 10-year government bond is taken as an indicator, there is in fact a drop in interest rates.

Bankers and market players will need signals as to what is the true level of interest rates, he said.

The Reserve Bank had last month announced a 0.75 per cent hike in cash reserve ratio to 8.25 per cent to reduce money supply in the banking system.

On rising global crude oil prices, which has crossed the US $ 122.31 per barrel mark, Kamath said its impact has to be seen.

"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.

(PTI)

(C) 2008 Asia Pulse Pte Ltd ********************************************************************** As of Monday, 05-05-2008 23:59, the latest Comtex SmarTrend® Alert, an automated pattern recognition system, indicated an UPTREND on 04-24-2008 for IBN

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