"The inflation numbers have come down significantly and are on a downward trend. If the inflation number keep coming down, there is a better chance of interest rates coming down than going up," Parekh told reporters here on Tuesday, Feb 17 evening.
He expected that adding a cut may not happen immediately but could come after a few weeks.
Parekh further informed that banks have been depositing a surplus 400 to 600 billion rupees with the Reserve Bank of India on a daily basis.
Since Oct, the central bank cut its key lending rate, the repo rate, by 350 basis points in four moves to bolster growth.