Lending rates likely for another 25 bps rise
By Joseph Samson
Jul 21, 2010
Print    Email    RSS   

It is expected by majority of economists that a rise in lending rates by another 25 basis points is likely from the kitty of RBI. The rise is expected to come by next week when the RBI sits for the monetary policy review on July 27.

With growing double digit inflation since the last five months coupled with expectations of 8.5% economic growth this fiscal, the policy tightening steps by RBI seems more evident.

The rates have so far been raised three times each by 25 bps by the apex bank in this year. The hike which came on July 2 was a total surprise for banks as well as the financial services sector.

"My sense is unless we see a strong pick up in domestic demand both for credit, investment and for the economic activity in general, we might see a little bit of a softer approach towards policy tightening than initially thought," said Saugata Bhattacharya, an economist with Axis Bank in Mumbai.

Economists feel that the repo rate would see a 50 bps hike by December 2010 and so also the reverse repo rate. Cash reserve ratio (CRR) is however expected to show no change owing to tight liquidity conditions prevailing in the economy.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

J&K Bank raises PLR
Carnival of Indian Personal Finance Blogs#10
Carnival of Indian Personal Finance Blogs #3
Six tips to choose your home loan lender
The home loans interest rate story: The...

how can I can my Provisional Home Loan Certificate...
How can I get my Home loan provisional certificate...
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive