Little chance of rate cut on July 31: Parekh

deepak_0.jpg.crop_display.jpg

There is a very slim chance of the Reserve Bank cutting interest rates in the forthcoming monetary policy meeting scheduled on July 31, HDFC Chairman Deepak Parekh on Thursday said.

"Unless the Reserve Bank sees a trend that inflation is actually coming down, I don't see the Reserve Bank reducing interest rates," Parekh told the company's shareholders at its annual general meeting here.

He said even though there has been a softening in the crude and commodity prices, the gains have been eroded by the sharp depreciation in the rupee, which has lost over 25 per cent a dollar since last August.

There has been a clamour for a cut in repo rate from the RBI in its quarterly review of the monetary policy slated for July 31. RBI governor D Subbarao recently said that sacrificing some economic growth is necessary to rein in price rise.

The headline inflation for May had stood at 7.55 percent while the food inflation was near the double digit mark. HDFC's vice chairman and chief executive Keki Mistry feels that the RBI will wait for forthcoming data releases like the factory output scheduled for tomorrow and inflation before taking a call on cutting rates.

"If inflation numbers have started looking lower, if monsoons have been good by that time, then RBI will look at a quarter or a half percent cut in rates," he said.

But otherwise, I think the way things stand at this moment, I think its a relatively lesser chance of a rate cut unless there is drop in inflation, Mistry noted. However, Parekh said "the worst is over" and there will not be any further rate hikes by the RBI in the near future.

Post new comment

<form action="/comment/reply/170224" accept-charset="UTF-8" method="post" id="comment-form"> <div><div class="form-item" id="edit-name-wrapper"> <label for="edit-name">Your name: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="60" name="name" id="edit-name" size="30" value="Reader" class="form-text required" /> </div> <div class="form-item" id="edit-mail-wrapper"> <label for="edit-mail">E-Mail Address: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="64" name="mail" id="edit-mail" size="30" value="" class="form-text required" /> <div class="description">The content of this field is kept private and will not be shown publicly.</div> </div> <div class="form-item" id="edit-comment-wrapper"> <label for="edit-comment">Comment: <span class="form-required" title="This field is required.">*</span></label> <textarea cols="60" rows="15" name="comment" id="edit-comment" class="form-textarea resizable required"></textarea> </div> <fieldset class=" collapsible collapsed"><legend>Input format</legend><div class="form-item" id="edit-format-1-wrapper"> <label class="option" for="edit-format-1"><input type="radio" id="edit-format-1" name="format" value="1" class="form-radio" /> Filtered HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Allowed HTML tags: &lt;a&gt; &lt;em&gt; &lt;strong&gt; &lt;cite&gt; &lt;code&gt; &lt;ul&gt; &lt;ol&gt; &lt;li&gt; &lt;dl&gt; &lt;dt&gt; &lt;dd&gt;</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> <div class="form-item" id="edit-format-2-wrapper"> <label class="option" for="edit-format-2"><input type="radio" id="edit-format-2" name="format" value="2" checked="checked" class="form-radio" /> Full HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> </fieldset> <input type="hidden" name="form_build_id" id="form-bddb78f9eadcc773cacffee4ee44a7b1" value="form-bddb78f9eadcc773cacffee4ee44a7b1" /> <input type="hidden" name="form_id" id="edit-comment-form" value="comment_form" /> <fieldset class="captcha"><legend>CAPTCHA</legend><div class="description">This question is for testing whether you are a human visitor and to prevent automated spam submissions.</div><input type="hidden" name="captcha_sid" id="edit-captcha-sid" value="85270086" /> <input type="hidden" name="captcha_response" id="edit-captcha-response" value="NLPCaptcha" /> <div class="form-item"> <div id="nlpcaptcha_ajax_api_container"><script type="text/javascript"> var NLPOptions = {key:'c4823cf77a2526b0fba265e2af75c1b5'};</script><script type="text/javascript" src="http://call.nlpcaptcha.in/js/captcha.js" ></script></div> </div> </fieldset> <span class="btn-left"><span class="btn-right"><input type="submit" name="op" id="edit-submit" value="Save" class="form-submit" /></span></span> </div></form>

No Articles Found

No Articles Found

No Articles Found

I want to begin with a little story that was told to me by a leading executive at Aptech. He was exercising in a gym with a lot of younger people.

Shekhar Kapur’s Bandit Queen didn’t make the cut. Neither did Shaji Karun’s Piravi, which bagged 31 international awards.