As per the Central Government's Thursday's data, the food Inflation rate has reached 20% highest in the last 2 decades, and the inflation is nearing 5% which is ahead of the expection(earlier projected somewhere near March 2010).
Worried RBI is getting ready to fire its role n responsibility. In a day or two, RBI is meeting the finance ministers and almost itd evident that by next week its going to hike the rates and inturn it will put pressure on the banks to restrain from easy lenging of money to the retailers. Expect atleast 1% hike in interest rates in next one month in steps to control the rising food and inflation rates.
if at all you are believing that HDFC and ICICI have come up with new attractive Home loan rates, you will be the greatest bakra of this season. Their offer is only upto Jan 31 and it is applicable for those loans where they disburse the first instalment before march 2010. Later home loans will be in line with the market rates at that moment. it is another attempt by the private banks to try their last chance for this financial year, so that they can show some descent figures in their balance sheet for the investors for the year 2009-10. else their market value will get severely damaged due to underperformance. Remember The same banks were cracked jokes and laughing and commented that its a cheap gimmick scheme, when SBI introduced this scheme 8 months back in the indian market. But SBI has almost stopped taking anymore fresh requests for this scheme due to the expected hike in the rates by the RBI by december end.
It is again time for potential buyers/investors to wait and watch for some more time so that the real estate market is expecting another round of correction due to lacklustre response inspite of making hulla gulla hyped publicity by hiring cheap gimmick Media's like Times of India.
Interest Rates ready to move North side
Re: Interest Rates ready to move North side
I agree. The WPI is not important. The CPI is what affect the poor and the common man. 20% CPI is ridiculous and the Govt. / RBI will be forced to be seen as taking some kind of action. Else opposition will corner them and their main plank of "aam aadmi" govt will take a beating. This means raising of interest rates is inevitable. RBI has not squeamish about raising rates in the past and might go for it in the next 3 months.