Newly-elected CII president and ICICI Bank CEO K V Kamath expects interest rates to move southwards in near future. "Given the liquidity in the system, interest rates should have already come down. However, the environment created in the market was such that it restrained interest rates from coming down," he said. The reduction in bond rates in the last few days after the credit policy announcement was an important bellwether pointer in that direction, he said.

Commenting on the fiscal measures announced by the government to curb inflation, Mr Kamath said CII supported the reduction in import duties but would have to examine the efficacy of the imposition of export duties. "The benefits of imposing export duty on any product are not clear. The international experience is mixed," he said.

Projecting an 8-9% GDP growth in 2008-09, the CII president said though the Indian corporate sector has registered mixed results in the last quarter, the numbers were not as bad as some had predicted. "There is no negativity in the minds of corporates. We need to know the pulse of the consumer and continue to work towards a higher rate of growth," he said. He added that the latest figures showed the US was coming out of recession, which should augur well for the Indian economy and companies.

Mr Kamath said domestic banking is at the best juncture in a decade. "The financial sector has grown at a consistent pace. In fact, the question to be addressed is if the sector is geared to meeting the requirements of the country's growth trajectory," he said.

He highlighted the areas of work for CII in 2008-09. "While we will continue to focus on the skill development initiatives and in ensuring that the sections which were otherwise ignored are benefited, we would also like to attend the manufacturing and agricultural sector," he said.

He added that in the services sector, CII will focus on promoting private investment in tier-II cities, particularly in healthcare, organised retail, tourism and logistics.

SBI chief doesn't see interest rate hike: State Bank of India on Thursday said that it does not expect the interest rates to go up in the short term. "I do not see interest rates rising in near future," SBI chairman O P Bhatt said. While announcing annual credit policy for 2008-09, RBI had hiked CRR by 25 bps to 8.25%.