CRR rise may not lead to increase in interest rate: Parekh

Subscribe to Oneindia News

New Delhi, Oct 30 (UNI) HDFC Chairman Deepak Parekh today said there might be no subsequent rise in interest rate following the 50 basis point hike in the Cash Reserve Ration (CRR).

''There is surplus liquidity in the system and we might not see increase in interest rates despite of CRR hike ,'' Mr Parekh said.

Inflation figures high on the RBI agenda and we cannot afford to have the kind of inflations we witnessed some six months ago.

Prices of vegetables, fruits and food items must be checked, Mr Parekh added.

Talking on the P-Note tightening by the RBI, Mr Parekh said the type and the amount of capital that was coming in through this route made it imperative to be regulated. ''The 18 months time frame given is enough to wind up the positions.'' ''With the government setting a 25 billion dollar investment target, foriegn capital will come in, but FDI is more desirable as it is long term while FIIs are hot money,'' he said.

He also said HDFC Standard Life Insurance will see a public listing in 2009.

UNI

Please Wait while comments are loading...