NEWS & ADVICE : PERSONAL LOAN
Interest rate hike seems inevitable
By Vaibhav Aggarwal
Jul 26, 2010
Print    Email    RSS   

The upcoming monetary policy review on July 27th is likely to bring with it an increase in its policy rates. According to bankers, increasing demand for credit coupled with towering inflation figures have left little option for RBI but to raise interest rates further.

It is expected by research houses like Nomura, Edelweiss and Crisil that there will be an increase in repo as well as reverse repo rates by atleast 25 basis points. Owing to the tight liquidity condition, it is expected that RBI will not make any hike in cash reserve ratio (CRR).

According to D K Joshi, chief economist of Crisil, the repo and reverse repo rates will rise by at least 25 basis points to 5.75% and 4.25% respectively.

As upto 2nd July 2010, banks have seen a srtrong rise in credit offtake at 21.7%. The annual credit growth as per the RBI had been projected at 20%. As compared to this, there has been a slow growth in deposits at 14.9%.

However, whatsoever decision the RBI takes, it would ensure the required availability of liquidity so that companies in need of it do not get affected.


 


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

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
A chronicle of excesses by loan recovery...
Bank loans that could glitter for you
Benefits and drawbacks of personal loans...
How far can new banking licenses be banked...
Carnival of Indian Personal Finance Blogs #6


WE OFFER GOOD SERVICE/ QUICK LOAN SERVICE OFFER...
Loan to meet your needs. For more information...
HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive