monetary-policy

RBI squeezes Banks, but home loans safe for now

by Paul Joseph April 26, 2010

Home loan borrowers and prospective car buyers can heave a sigh of relief. A quarter percentage point hike in signal rates by the Reserve Bank of India (RBI) on Tuesday is not big enough for banks to immediately jack up lending rates. But the honeymoon of soft rates is over, and experts said consumer loans could get costlier later this year. The RBI increased its signal rates in its annual monetary policy statement for 2010, because inflation has been growing. By raising the cash reserve ratio (CRR) to six per cent, it signalled its intention to squeeze some cash out of commercial banks into its own treasury. It also raised the rates at which it lends and borrows from banks — all by 25 basis points. “The RBI has set the stage for more rate hikes,” said Abheek Barua, chief economist at HDFC Bank. “If that happens there may be visible impact on the lending rates.” RBI governor D. Subbarao too did not rule out further hikes. “I will not rule out a mid-cycle action because we do not know how the situation will turn. But we will think many times before we do it,” Subbarao said. Keki Mistry, CEO of home loan lender HDFC, said there was “enough liquidity in the system” implying that banks would not run short of cash following the rate hike and thereby consider raising home loan rates, to feel a demand pinch for home loans that might encourage banks to raise rates. Whether there are further hikes or not will depend on the inflation figures in coming months. And that  in turn depends upon the monsoon and global oil prices. Source:http://www.hindustantimes.com/RBI-squeezes-Banks-but-home-loans-safe-for-now/H1-Article1-533864.aspx Filed under: Home loans Tagged: Home loans

Tagged as: home-loans, inflation, lending, monetary-policy, reserve, reserve-bank

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Home Loans to Stay Stable

by Paul Joseph April 21, 2010

A quarter percentage point hike in signal rates by the Reserve Bank of India (RBI) on Tuesday is not big enough for banks to immediately jack up lending rates. But the honeymoon of soft rates is over, and experts said consumer loans could get costlier later this year. The RBI increased its signal rates in its annual monetary policy statement for 2010, because inflation has been growing. By raising the cash reserve ratio (CRR) to six per cent, it signalled its intention to squeeze some cash out of commercial banks into its own treasury. It also raised the rates at which it lends and borrows from banks — all by 25 basis points. “The RBI has set the stage for more rate hikes,” said Abheek Barua, chief economist at HDFC Bank. “If that happens there may be visible impact on the lending rates.” RBI governor D. Subbarao too did not rule out further hikes. “I will not rule out a mid-cycle action because we do not know how the situation will turn. But we will think many times before we do it,” Subbarao said. Keki Mistry, CEO of home loan lender HDFC, said there was “enough liquidity in the system” implying that banks would not run short of cash following the rate hike and thereby consider raising home loan rates, to feel a demand pinch for home loans that might encourage banks to raise rates. Whether there are further hikes or not will depend on the inflation figures in coming months. And that in turn depends upon the monsoon and global oil prices.

Tagged as: india, inflation, monetary-policy, reserve-bank

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RBI’s Decision Won’t Impact Housing Demand- Realtors

by Paul Joseph April 21, 2010

Real estate developers said RBI’s decision to tighten the monetary policy would not have a negative impact on housing demand, as they do not foresee any increase in home loan rates. “It’s a very balanced and calibrated announcement meant to control inflation. The signals from the PSUs as well as private banks are favourable and they expect no increase in home loan rates. This will be the ultimate interest of the home buyers,” said Rajeev Talwar, group executive director, DLF. Talwar said housing demand would remain firm. Parsvnath Developer’s chairman, Pradeep Jain, said: “I do not foresee interest rates going upwards. Therefore, there is no concern for the real estate sector.” In a move to rein in the runaway inflation, the apex bank today increased the repo and reverse repo rates by 25 basis points each and the CRR also by 25 basis points. Property consultants also feel that the hike in policy rates would not have any significant impact on the housing sector, which has witnessed a revival in demand for the last one year. “It was on the expected lines. This would have a sentimental and emotional setback on residential demand, not on office or retail,” Jones Lang LaSalle Meghraj country head Anuj Puri said. However, he cautioned that a continuous increase in the repo rates would curtail the optimistic sentiment of the real estate sector. Knight Frank India national director, residential agency, Anand Narayanan said, “Real estate is having a strong sentiment now. This will not have any significant impact on the buyers.”

Tagged as: banking and finance, knight-frank, monetary-policy, real estate, real estate india, salle-meghraj

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RBI’s Decision Won’t Impact Housing Demand- Realtors

by Paul Joseph April 21, 2010

Real estate developers said RBI’s decision to tighten the monetary policy would not have a negative impact on housing demand, as they do not foresee any increase in home loan rates. “It’s a very balanced and calibrated announcement meant to control inflation. The signals from the PSUs as well as private banks are favourable and they expect no increase in home loan rates. This will be the ultimate interest of the home buyers,” said Rajeev Talwar, group executive director, DLF. Talwar said housing demand would remain firm. Parsvnath Developer’s chairman, Pradeep Jain, said: “I do not foresee interest rates going upwards. Therefore, there is no concern for the real estate sector.” In a move to rein in the runaway inflation, the apex bank today increased the repo and reverse repo rates by 25 basis points each and the CRR also by 25 basis points. Property consultants also feel that the hike in policy rates would not have any significant impact on the housing sector, which has witnessed a revival in demand for the last one year. “It was on the expected lines. This would have a sentimental and emotional setback on residential demand, not on office or retail,” Jones Lang LaSalle Meghraj country head Anuj Puri said. However, he cautioned that a continuous increase in the repo rates would curtail the optimistic sentiment of the real estate sector. Knight Frank India national director, residential agency, Anand Narayanan said, “Real estate is having a strong sentiment now. This will not have any significant impact on the buyers.”

Tagged as: banking and finance, housing, monetary-policy, rajeev-talwar, real, salle-meghraj

0 comments Read the full article →

RBI’s Decision Won’t Impact Housing Demand- Realtors

by Paul Joseph April 21, 2010

Real estate developers said RBI’s decision to tighten the monetary policy would not have a negative impact on housing demand, as they do not foresee any increase in home loan rates. “It’s a very balanced and calibrated announcement meant to control inflation. The signals from the PSUs as well as private banks are favourable and they expect no increase in home loan rates. This will be the ultimate interest of the home buyers,” said Rajeev Talwar, group executive director, DLF. Talwar said housing demand would remain firm. Parsvnath Developer’s chairman, Pradeep Jain, said: “I do not foresee interest rates going upwards. Therefore, there is no concern for the real estate sector.” In a move to rein in the runaway inflation, the apex bank today increased the repo and reverse repo rates by 25 basis points each and the CRR also by 25 basis points. Property consultants also feel that the hike in policy rates would not have any significant impact on the housing sector, which has witnessed a revival in demand for the last one year. “It was on the expected lines. This would have a sentimental and emotional setback on residential demand, not on office or retail,” Jones Lang LaSalle Meghraj country head Anuj Puri said. However, he cautioned that a continuous increase in the repo rates would curtail the optimistic sentiment of the real estate sector. Knight Frank India national director, residential agency, Anand Narayanan said, “Real estate is having a strong sentiment now. This will not have any significant impact on the buyers.”

Tagged as: banking and finance, housing, knight-frank, monetary-policy, pradeep-jain, rajeev-talwar, real, real estate, salle-meghraj

0 comments Read the full article →

RBI’s Decision Won’t Impact Housing Demand- Realtors

by Paul Joseph April 21, 2010

Real estate developers said RBI’s decision to tighten the monetary policy would not have a negative impact on housing demand, as they do not foresee any increase in home loan rates. “It’s a very balanced and calibrated announcement meant to control inflation. The signals from the PSUs as well as private banks are favourable and they expect no increase in home loan rates. This will be the ultimate interest of the home buyers,” said Rajeev Talwar, group executive director, DLF. Talwar said housing demand would remain firm. Parsvnath Developer’s chairman, Pradeep Jain, said: “I do not foresee interest rates going upwards. Therefore, there is no concern for the real estate sector.” In a move to rein in the runaway inflation, the apex bank today increased the repo and reverse repo rates by 25 basis points each and the CRR also by 25 basis points. Property consultants also feel that the hike in policy rates would not have any significant impact on the housing sector, which has witnessed a revival in demand for the last one year. “It was on the expected lines. This would have a sentimental and emotional setback on residential demand, not on office or retail,” Jones Lang LaSalle Meghraj country head Anuj Puri said. However, he cautioned that a continuous increase in the repo rates would curtail the optimistic sentiment of the real estate sector. Knight Frank India national director, residential agency, Anand Narayanan said, “Real estate is having a strong sentiment now. This will not have any significant impact on the buyers.”

Tagged as: banking and finance, housing, knight-frank, monetary-policy, pradeep-jain, rajeev-talwar, real estate, salle-meghraj

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Banks Not to Jack up Home Loan Lending Rates

by Paul Joseph April 21, 2010

Home loan borrowers and prospective car buyers can heave a sigh of relief. A quarter percentage point hike in signal rates by the Reserve Bank of India (RBI) on Tuesday is not big enough for banks to immediately jack up lending rates. But the honeymoon of soft rates is over, and experts said consumer loans could get costlier later this year. The RBI increased its signal rates in its annual monetary policy statement for 2010, because inflation has been growing. By raising the cash reserve ratio (CRR) to six per cent, it signalled its intention to squeeze some cash out of commercial banks into its own treasury. It also raised the rates at which it lends and borrows from banks — all by 25 basis points. “The RBI has set the stage for more rate hikes,” said Abheek Barua, chief economist at HDFC Bank. “If that happens there may be visible impact on the lending rates.” RBI governor D. Subbarao too did not rule out further hikes. “I will not rule out a mid-cycle action because we do not know how the situation will turn. But we will think many times before we do it,” Subbarao said. Keki Mistry, CEO of home loan lender HDFC, said there was “enough liquidity in the system” implying that banks would not run short of cash following the rate hike and thereby consider raising home loan rates, to feel a demand pinch for home loans that might encourage banks to raise rates. Whether there are further hikes or not will depend on the inflation figures in coming months. And that in turn depends upon the monsoon and global oil prices.

Tagged as: india, inflation, lending, monetary-policy, real estate, real estate india, reserve, situation

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Banks Not to Jack up Home Loan Lending Rates

by Paul Joseph April 21, 2010

Home loan borrowers and prospective car buyers can heave a sigh of relief. A quarter percentage point hike in signal rates by the Reserve Bank of India (RBI) on Tuesday is not big enough for banks to immediately jack up lending rates. But the honeymoon of soft rates is over, and experts said consumer loans could get costlier later this year. The RBI increased its signal rates in its annual monetary policy statement for 2010, because inflation has been growing. By raising the cash reserve ratio (CRR) to six per cent, it signalled its intention to squeeze some cash out of commercial banks into its own treasury. It also raised the rates at which it lends and borrows from banks — all by 25 basis points. “The RBI has set the stage for more rate hikes,” said Abheek Barua, chief economist at HDFC Bank. “If that happens there may be visible impact on the lending rates.” RBI governor D. Subbarao too did not rule out further hikes. “I will not rule out a mid-cycle action because we do not know how the situation will turn. But we will think many times before we do it,” Subbarao said. Keki Mistry, CEO of home loan lender HDFC, said there was “enough liquidity in the system” implying that banks would not run short of cash following the rate hike and thereby consider raising home loan rates, to feel a demand pinch for home loans that might encourage banks to raise rates. Whether there are further hikes or not will depend on the inflation figures in coming months. And that in turn depends upon the monsoon and global oil prices.

Tagged as: banking and finance, india, inflation, monetary-policy, real estate, reserve-bank, situation

0 comments Read the full article →

Banks Not to Jack up Home Loan Lending Rates

by Paul Joseph April 21, 2010

Home loan borrowers and prospective car buyers can heave a sigh of relief. A quarter percentage point hike in signal rates by the Reserve Bank of India (RBI) on Tuesday is not big enough for banks to immediately jack up lending rates. But the honeymoon of soft rates is over, and experts said consumer loans could get costlier later this year. The RBI increased its signal rates in its annual monetary policy statement for 2010, because inflation has been growing. By raising the cash reserve ratio (CRR) to six per cent, it signalled its intention to squeeze some cash out of commercial banks into its own treasury. It also raised the rates at which it lends and borrows from banks — all by 25 basis points. “The RBI has set the stage for more rate hikes,” said Abheek Barua, chief economist at HDFC Bank. “If that happens there may be visible impact on the lending rates.” RBI governor D. Subbarao too did not rule out further hikes. “I will not rule out a mid-cycle action because we do not know how the situation will turn. But we will think many times before we do it,” Subbarao said. Keki Mistry, CEO of home loan lender HDFC, said there was “enough liquidity in the system” implying that banks would not run short of cash following the rate hike and thereby consider raising home loan rates, to feel a demand pinch for home loans that might encourage banks to raise rates. Whether there are further hikes or not will depend on the inflation figures in coming months. And that in turn depends upon the monsoon and global oil prices.

Tagged as: banking and finance, india, inflation, lending, monetary-policy, real estate, real estate india

0 comments Read the full article →

Banks Not to Jack up Home Loan Lending Rates

by Paul Joseph April 21, 2010

Home loan borrowers and prospective car buyers can heave a sigh of relief. A quarter percentage point hike in signal rates by the Reserve Bank of India (RBI) on Tuesday is not big enough for banks to immediately jack up lending rates. But the honeymoon of soft rates is over, and experts said consumer loans could get costlier later this year. The RBI increased its signal rates in its annual monetary policy statement for 2010, because inflation has been growing. By raising the cash reserve ratio (CRR) to six per cent, it signalled its intention to squeeze some cash out of commercial banks into its own treasury. It also raised the rates at which it lends and borrows from banks — all by 25 basis points. “The RBI has set the stage for more rate hikes,” said Abheek Barua, chief economist at HDFC Bank. “If that happens there may be visible impact on the lending rates.” RBI governor D. Subbarao too did not rule out further hikes. “I will not rule out a mid-cycle action because we do not know how the situation will turn. But we will think many times before we do it,” Subbarao said. Keki Mistry, CEO of home loan lender HDFC, said there was “enough liquidity in the system” implying that banks would not run short of cash following the rate hike and thereby consider raising home loan rates, to feel a demand pinch for home loans that might encourage banks to raise rates. Whether there are further hikes or not will depend on the inflation figures in coming months. And that in turn depends upon the monsoon and global oil prices.

Tagged as: india, inflation, monetary-policy, real estate, reserve, reserve-bank

0 comments Read the full article →