Shikha Sharma
MD & CEO, Axis Bank
It is very tough to predict what the interest rate scenario will be like. Right now, there is plenty of liquidity and credit growth is slow. So, there is no natural pressure on interest rates. However, if there is regulatory action and liquidity is sucked out, and credit growth picks up, as we believe it will next year, we could see a rise in interest rates. So, the key factors are regulatory action and credit growth.
CMD, Punjab National Bank
Interest rates are expected to remain stable in the early part of 2010. There is ample liquidity in the system. Rising inflation, which emanates from supply side, is a concern. Though monetary policy has limited scope in tackling this aspect of price rise, the Reserve Bank of India will not watch from the sidelines. It will initiate steps to manage inflationary expectations in the economy.
MD & CEO, IndusInd Bank
The upturn in the interest rate cycle is underway since June 2009 on higher growth momentum, supply-side inflationary pressures driven by poor monsoon and higher market borrowing.
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There is no reason to panic on the hawkish stance on liquidity and interest rates as long as the economic upturn remains intact.
VC & MD, HDFC
The price of money is after all a function of demand and supply. With inflation moving up, RBI may look to tighten the monetary policy sooner or later. However, this may not immediately result in a sharp increase in interest rates on account of the huge liquidity that currently exists. We will probably start seeing higher interest rates only after there is a significant increase in corporate credit off-take.