New Delhi: While the loans are getting cheaper across the world, the interest rates continue to remain high in the country. And if the RBI officials are to be believed, rates are unlikely to scale down in near future.

The RBI blames the higher crude oil prices in the international market for the high interest rates in the country.

RBI Deputy Governor Subir Gokarn on Wednesday said, “The crude oil prices have remained very steady. Banks are unlikely to lower their interest rates further in the near future.”

Earlier RBI Governor D Subbarao had said, “The Government is striving hard to contain rising price rise, therefore the interest rate will remain steady.”

During the 2008-09 global crises, the crude oil prices had slipped from whopping USD 148 a barrel to USD 53 a barrel within a week.

However, this year despite the low demand of crude oil in the American and European countries, the prices remained at USD 106 a barrel on Wednesday.

Significantly, changes in crude oil prices impact inflation in India. As our country imports 80 percent of its crude oil needs, the international market decides the domestic petro prices.

Oil companies have hiked petro prices several times over the last one year, thus adding to the inflationary trends in the country.

(JPN/Bureau)