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RBI likely to hike interest rates in Q4 FY`10: Parekh

Last Updated: Wednesday, October 7, 2009 - 13:17

Mumbai: The Reserve Bank is likely to hike
interest rates marginally in the fourth quarter of this fiscal
to rein in the steady rise in prices, a top financial sector
expert said.

"To give a signal that the government is concerned about
inflationary pressures, there is a chance of a marginal hike
in interest rates in the January-March 2010 quarter," HDFC
chairman Deepak Parekh told reporters in Mumbai.
The hike in interest rates could be by at least 0.5 percent, he said, adding, however, that any hike in rates was
unlikely to happen in the current quarter.

On liquidity Parekh said, at present it was sufficient.

With a revival in the economy and pick-up in construction
activities, banks could witness a growth in their wholesale
loans going forward, he said.

However, any pick-up in loans to the commercial real
estate sector is unlikely, he said.
"I don`t see commercial real estate loans picking-up ...
there are a large number of commercial real estate properties
that are ready to be occupied," he said.

Banks have seen an increase in their housing loans
portfolio in recent months, Parekh said.

Bureau Report

First Published: Wednesday, October 7, 2009 - 13:17

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