New Delhi: Consider yourself lucky if interest rates stay flat as it will be very hard for RBI to lower interest rates now, HSBC India Country Head Naina Lal Kidwai said on Tuesday.
"We would be lucky if interest rates actually stay flat. But the issue isn't too much what the RBI does on rates, as what banks are able to do. And we have not seen enough transmission of large cut which RBI made," she said during an interaction here.
Last night, RBI announced a slew of measures to curb volatility in the rupee, which is trading around 59-60 level to the dollar due to pulling out of foreign funds from the domestic market.
"I think it will be very hard for RBI to lower interest rates. But unfortunately what the industry needs to grow is lower interest rates," Kidwai said.
She said given the current environment where the rupee has been, "it is very hard to expect an environment where interest rates from the Reserve Bank are seen coming down."
Kidwai also said the bigger issue for the government in the present scenario is to restrict the widening current account deficit gap as well as bring down the imports bill.
CAD, which is the gap between total imports of goods, services and transfers and exports, had hit a record high of 4.8 per cent of the GDP in 2012-13 as rising oil and gold import widened the trade gap to USD 195.7 billion.
Kidwai said India needs to be self reliant in energy security and resources such and wind and solar should be harnessed to cut the rising oil bill.