ICICI Bank expects stable interests for the time being

ICICI Bank CEO and MD and CII president K V Kamath on Thursday said that there are no indications from the market to signal any change in interest rates at the moment, even though the RBI is sucking out over Rs 27,000 crore from the system. He also attributed the weakening of the rupee against the dollar to expectations of a stable interest rate regime in the US, which has made the greenback stronger against other currencies.

“At this point of time I think no change (in interest rate) is seen,” he said. Kamath said that at this point of time, the market have not judged which way interest rates are going, but if yield on 10-year government bonds is taken as an indicator, there is definitely a drop in interest rates.