After the announcement of the budget 2014-15 it is expected that interest rates may fall in future. Finance minister stated that government aim should not only be to control the inflation, but also need to maintain a balance between growth and controlling process. After the announcement the bond yields dropped down by 10%.
HDFC manager reported that revision for the reductions in rates will in smaller number, chances of larger reductions in rates is possibly low. However among the bankers some uncertainty is their regarding the way in which the rates have to be moved. Further it has been reported that a good news is there, that the exchange rates are steady. However the actual situation will be in front after the elections. Only after elections the government’s actual willingness to provide the fiscal consolidation will be in front.