'Interest rates to be stable, inflation to turn positive' | business | Hindustan Times
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'Interest rates to be stable, inflation to turn positive'

business Updated: Aug 21, 2009 11:08 IST
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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 in Mumbai.

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 year.