"I hope that it stays stable because interest rate going up will be a body blow to industry and industrial growth, which is very important, at a very fragile position right now," Kidwai, who is also the president of industry body Ficci said.
The Reserve Bank is scheduled to unveil its first quarter review of the monetary policy on July 30.
"We need the confidence to return to industry in terms of investments, in terms of growth," she said.
Kidwai, however, wished that banks should transmit series of interest rate reduction undertaken by RBI since January, 2012.
Rupee, which plunged to a record low 61.21 against the dollar on July 8, has lost 7.3 percent this year. There is a widespread speculation that the ongoing volatility in the rupee would compel RBI to raise policy rates to stem inflationary expectations.
Inflation could again raise its head as imports have become dearer due to depreciating domestic currency.
"I still believe and hope we will not see interest rate increase. But we really counting on interest rate reduction. We are still hoping for it," she said.
"We wanted transmission of those interest rates reduction coming from RBI into the important sector. That transmission has barely happened and now we would be lucky if it does not go up," she added.


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