Interest rates might not ease soon: ICICI

ICICI Bank's Joint Managing Director, Chanda Kochhar, said in Mumbai.

Kochhar said that Inflation movement would depend upon a lot of factors. Commodity prices and liquidity conditions in the system would dictate inflation numbers, she said.

Asked about the new RBI Governor, D Subbarao, appointed by the Government yesterday to replace Dr Y V Reddy, the ICICI Bank official said that she welcomed his appointment.

"I welcome him--he has a strong fiscal background which will help him to do well in the new role."

Subbarao takes over as the Governor, RBI, from Dr Reddy whose term ends on September 5.

According to her, the Reserve Bank had to achieve a balance between reining-in inflation, now over 12 per cent, and supporting growth, presently showing signs of slackening.

"The (banking) regulator has the twin task of managing inflation and supporting growth," Kochhar said.