Home, car and personal loans are now certain to be more expensive with the Reserve Bank of India, under pressure to combat rising inflation, on Friday announced stringent steps like raising mandatory cash reserves of banks to suck over Rs 36,000 crore (Rs 360 billion) out of the system.
Joy Thomas stated that one large account -- HDIL -- was the sole reason for the present crisis that led to the regulatory action on Tuesday when Reserve Bank of India superseded its management and placed it under an administrator for the next six months.
Expressing disappointment over the hike in repo rate by the RBI, India Inc on Friday said a rate cut by the bank would have helped ameliorate sentiments as businesses are "reeling" under a tight liquidity crunch due to high cost of capital.
Mirroring weak cues from the overseas markets, the Sensex opened with a negative gap of 215 points at 10,765. The index thereafter tried to recover but slipped to lower levels after the Reserve Bank of India (RBI) announced its annual credit policy.
Attainment of growth and price stability through isolated measures by RBI may not be the most effective way
The Reserve Bank of India (RBI) may not go in for key policy rate cuts in its quarterly policy review slated for January 23, said a senior finance ministry official.
The recent hike in the rates will hurt your finances further. Time to do some stock-taking.
However, RBI would continue to nudge banks to cut lending rates
'We don't know how much the Pay Commission outflow will be.'
A day after the Reserve Bank of India (RBI) raised the benchmark repo rate and cash reserve ratio (CRR), leading property developers said they are mulling hiking prices of apartments and focusing on the affordable housing segment to counter the impact of a high interest rate regime.
At a meeting with chairmen and managing directors of public sector banks, Chidambaram asked them not to overprice loans to FMCG and automobile sectors.
The Reserve Bank of India is unlikely to ease the requirement for banks to keep cash with the central bank through a cut in CRR rate in its mid-term monetary review on October 24 even though the banking system is facing liquidity problem, Finance Ministry sources said on Wednesday.
With banks taking the cue from RBI to hike rates, home buyers will have to take serious measures to keep their finances under control.
Perhaps asset inflation in some parts of the country is not what it should be. To that extent you could say there is a bubble in some places. Will it burst or will there be a soft landing? It's too early to call, says K V Kamath.
The Reserve Bank of India cut its repo rate by 25 basis points to 6.50 per cent.
Interest rates are not expected to go up immediately even as the Reserve Bank of India on Tuesday announced a fresh 25-basis-point hike in the cash reserve ratio (CRR), the amount of cash banks must keep with the central bank, in its Annual Policy Statement for 2008-09. The impact is, however, expected to be marginal as bankers talked about keeping lending rates stable for the time being due to sufficient liquidity in the system. The move will absorb around Rs 8,000 crore.
Top bankers have hailed the contributions of the outgoing Reserve Bank Governor Duvuuri Subbarao saying he did his best during a tenure that was marked by difficult times for the economy.
The beneficiaries of future trading in agriculture commodities are the farmers in India. Any ban on futures trading is not a realistic measure to prevent inflation, because the price movement of a commodity is based on the demand and supply system.
Home loans and consumer goods loans are likely to remain high as the Reserve Bank of India kept its key policy rates unchanged during its Monetary Policy review on Tuesday.
Large inflows of foreign capital have contributed to a significant increase in money supply, raising expectations of more frequent monetary tightening by the Reserve Bank of India to rein in inflation.
The RBI has announced its credit policy last week and auto financiers believe that consumers should 'wait and watch' before the interest rates on auto loans settle down.
With the market zooming up one day and plunging the next, analysts think it's best to wait and watch in this volatile situation.
Country's leading housing finance company HDFC chairman Deepak Parekh said on Friday that he expects interest rates to soften by 0.25-0.50 per cent if there is no hike in the cash reserve ratio.
'Interest rates will depend on the respective banks depending upon their deposits. We will get a clearer picture from the banks in the coming days,' says Y V Reddy.
The outlook on liquidity depends on various factors this week. If the Reserve Bank of India decides to remove the cap on the amount raised under the reverse repo, it will immediately modulate the liquidity.
The Reserve Bank of India (RBI) may opt for a 25 per cent cut in the repo rate, to prop sagging demand in the interest rate-sensitive durables sector in the mid-term review of its 2007-08 monetary policy on October 30.The likely reduction in the repo rate would take place despite concerns about inflation, which suggest that interest rates can be left unchanged, banking sources said.
While our 2007-08 macro forecasts have factored in a rate cut as well as a CRR hike, the timing is uncertain as the RBI may wish to see the impact of the Sebi P-Note proposals on dollar inflows. In any case, the RBI is flexible and has been effecting inter-policy measures. Policy rates are headed lower, but reserve requirements would be higher: With forex reserves up $57 billion in this financial year and the rupee gaining 9 per cent since April 2007.
A day after the Reserve Bank kept key interest rates unchanged, the International Monetary Fund on Wednesday said further interest rate increases are needed in India with monetary conditions still accommodative and credit expanding strongly.
The interest rate is the RBI's best bet for keeping the economy close to the 'normality' benchmark.
As we had expected, real estate stocks have seen a slump in prices. The downturn may continue, so it's better to stay away.
The Reserve bank of India has just increased its repo rate and CRR and there are chances that banks may soon increase the interest rates on home loans.
A spiralling inflation is likely to force the Reserve Bank of India to up the Cash Reserve Ratio by 0.75 per cent in FY 09, along with a 1 per cent hike in repo and reverse repo rates, global financial services major, StanChart said.
Consumers may not have got any respite from high interest rates, but they also need not be apprehensive about further increase with the Reserve Bank of India giving a clear signal for stable monetary policy stance.
Since the start of the year, the RBI has had to contend with rising inflation and increased liquidity in the financial system causing it to raise CRR and repo rate to reign in the excess money.
Inflation rises to 7.33 per cent for the week ended April 12 from 7.14 per cent in the previous week.
If India sustains long-term growth, you could make good money off the stock market.
The NSE Nifty ended at 5280, up 6 points (provisional) from the previous close. A fresh round of selling following the status quo stance taken by the Reserve Bank of India on Tuesday. The RBI in its third quarterly monetary policy review kept all key rates - bank rate, repo rate and the reverse repo rate - and the cash reserve ratio unchanged.
A key player in the home loan market, HDFC on Thursday said it would hike housing loan rates by another 0.50 per cent this month-end or early March.
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