Interest rates will be market driven: Kamath

Mumbai, March 23 | Updated: Mar 24 2006, 05:30am hrs
ICICI Bank managing director and CEO, KV Kamath said that the recent increase in interest rates was warranted and has already been factored in by ICICI Bank. Any change in borrowing or lending rates will be determined by market cues.

Further, commenting on liquidity conditions he said that money is available in the system. However, this money is available at a cost and this cost is dependent on market conditions. At this point of time we do not think any further rate hike is warranted and expect interest rates to remain stable, he added.

Commenting on the committee set up by the finance minister of which Mr Kamath is also a member, he said, Both RBI and FMhas set an appropriate growth path for the country and we plan abide by it.