Mumbai, Apr 4: The ICICI Bank Chairman and Managing Director K V Kamath today said the Indian system has comfortable liquidity as of now but measures to contain inflation is need of the hour and much has to be done at the supply-side.
''Liqudity in the system is very comfortable, nevertheless, inflation is a challenge. We will see economic growth happening, though it may slow down from about ten per cent to eight per cent,'' Mr Kamath told newsmen on the sidelines of a conference organised by the Confederation of Indian Industry (CII) here today.
There are global circumstances that have led to inflation, he said adding, ''At this point of time, it's purely a supply-side phenomenon, more than because of what we would term as overheating.'' While asked about possiblity of interest rate hike by the apex bank and rate cut by the banks to boost credit growth, Mr Kamath said, ''I can't comment on the policy issues and it would be right to wait for a policy signal before a decision on interest rates.'' ICICI Joint Managing Director Chanda Kochhar, said ample liquidity was a positive sign and did not expect any change in interest rates. ''I think interest rates would stay where they are now,'' Ms Kochhar asserted.