"I don't see any fluctuation that will exert upward pressure on interest rate," Romesh Sobti, executive vice-president and country representative, ABN Amro said on the sidelines of the launch of a co-branded card with Max Healthcare.
In the long run also the rates are not likely to move in a wide band, he said. They might move by 25-50 basis points, he said, adding this is unlikely to impact anybody's retail business.
He said oil prices hike might put pressure on the inflation rate in the long run, which could raise interest rate in a narrow band.
There was so much talk of on interest rates hike for the past one year, but interest rates of some segments like auto and housing moved by 25-50 basis points only, he said. From the point of view of ABN Amro, he said the bank is not going to hike the rates in the near future.
While most bankers see stable interest rates in near future, economic think tank Institute of Economic Growth said it expected a rise in the interest rates in the coming months.
"Based on the data up to August 2005, we forecast a marginal rise in prime lending rate from its existing rate of 10.5 per cent in the next three months," the institute said in its latest monthly monitor.
© 2026