RBI may hike CRR, policy rates in near term: ABN Amro

MUMBAI: A healthy 7.9 per cent jump in GDP growth in Q2 FY 10 may prompt the Reserve Bank of India to hike the Cash Reserve Ratio (CRR) and key policy rates in the near future, a top banker today said.

"There is a likelihood in the medium-to-long term that interest rates will rise..there is also a possibility of (RBI) hiking the CRR to suck out excess liquidity from the system," ABN Amro Country Head Meera Sanyal told reporters here.

In the face of a global financial meltdown, the Reserve Bank had lowered its policy rates over the past one year to support the sagging economic growth.

The Government also came up with stimulus measures to boost demand in the domestic market hit by the downturn.