The country's largest private sector lender ICICI Bank on Tuesday said that it expects the Reserve Bank to continue with calibrated approach to check inflation at its upcoming September 16 monetary policy review.
"The Central Bank has taken a balanced and calibrated approach. We expect the same approach going forward in the long-run to continue to check inflation," ICICI Bank CEO and MD Chanda Kochhar said at a FICCI-IBA conference here.
Inflation continues to be high and widespread due to which the RBI may continue with its stance, she said. Kochhar added that the days of excess liquidity are over, but it is not yet a matter of concern.
RBI has been tightening key benchmark (its lending and borrowing) rates since November last year, after the country started recovering from the impact of the global economic slowdown.
Over the past few months, inflation has been a major area of concern and RBI has been tightening its policy rates to tame it by trying to check consumer spending. However, there have been some concerns that too much tightening of rates might hamper economic growth.
In its last policy announcement on July 27, the apex bank raised the repo rate (lending) by 0.25 per cent to 5.75 per cent and the reverse repo rate (borrowing) by 0.50 per cent to 4.50 per cent. In the policy, it had also announced that mid-quarter statements will be given out, the first of which will be done on September 16.
