‘Interest rates to be stable, inflation to turn positive’

Last Updated: Friday, August 21, 2009 - 09:59

Mumbai: Interest rates are likely to remain stable going forward and inflation numbers would return into the positive zone, a top financial sector expert said.

"There is plenty of liquidity in the system. I don`t think you are going to see interest rates going hay wire," HDFC Vice Chairman and Managing Director, Keki Mistry, told reporters here.

Interest rates could rise but not in the near-term,
Mistry said.

"A marginal increase in interest rates over a period
of time, may be in next 6-10 months, is possible but it is not
going to be huge," he said.

On inflation, the HDFC official said that with the
base effect wearing out, inflation numbers would go up.

"You will probably start seeing positive inflation
numbers coming in from now onwards because the base effect has
partly worn out," Mistry said.

However, inflation would not touch the eight to nine
per cent mark or double digit levels as it did during last

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First Published: Friday, August 21, 2009 - 09:59

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