Inflation in India remains sticky and that's reason enough not to expect interest rates to fall anytime soon, says the executive vice chairman and managing director at private lender Kotak Mahindra Bank.
The Reserve Bank of India (RBI) on Tuesday left its benchmark interest rate unchanged at 8 percent in a widely anticipated move.
It has hiked rates three times by a total of 75 basis points to contain price pressures since last September, when Governor Raghuram Rajan took over the helm.
"The issue is that consumer price inflation is still high at about 8 percent and within this, core inflation is still sticky," Kotak Mahindra Bank's Uday Kotak told CNBC, replying to a question about whether he expected a rate cut.
India's consumer price inflation eased to 8.10 percent in February from a year earlier, near the 8 percent target the RBI has for January 2015. Core inflation, which excludes food, remains high at about 8 percent.