Now is the right time to work on reducing interest rates - K V Kamath, ICICI Bank

Existing and new ICICI Bank customers to get their new year gift in the form of a cut in interest rates

Forecasting that inflation is inching towards zero, ICICI Bank Managing Director and CEO K V Kamath on Tuesday suggested to the Reserve Bank to further cut key policy rates by 100 basis points as part of a calibrated move to usher in a low interest rate regime.

"I think just now let us start by cutting them (repo and reverse repo rates) by 1 per cent or so, and see what happens," he told when asked for what his advise would be for RBI to reverse the economic slowdown.

Kamath, who is also the President of the Confederation of Indian Industry, said, "It would be in everybody's interest to work interest rates down. Inflation clearly talked of being near zero. I think it is the right time to work on this front (reducing interest rates) now.

ICICI home loan interest rates:

As for the ICICI Bank customers, Kamath promised, they would get their new year gift in the form of a cut in interest rates.

"We are looking at cutting interest rates very early in January for our housing and other loan customers," he said.

The extent of the rate cut is being calibrated and would be announced soon, he said when asked if the rate could be more than 100 basis points.

ICICI had earlier this month reduced home loan rates for new customers by up to 1.5 per centage point. There are indications that the fresh cut in interest rates would benefit both existing and new customers.
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