No Further Hike In Interest Rates RBI Dec 2011
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No further hike in Interest rates RBI Dec 2011

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In the second quarter review which was on Oct 25 RBI has indicated that there will be no hike this time.

The basic rates will remain same that is

  1. CRR - 6%
  2. Repo rate under the liquidity adjustment facility (LAF)  at 8.5 per cent.
  3. The reverse repo rate under the LAF will remain unchanged at 7.5 per cent and the marginal standing facility (MSF) rate at 9.5 per cent.

RBI in its statement has given guidance that from now the inflation pressure is relatively low so from now onwards the rate hikes may not happen.

RBI is expecting the growth rate to slide and in next review might think of lowering rates.

With the new policy the effect on

  1. Home loans- New Home loan pricing may come down as some banks may come out with schemes of lower rates as they expect  RBI to reduce rates.
    Existing Home loans borrowers may not get a raise in rates but may also chances of getting rates reduced is less untill RBI changes its policy.
  2. Personal loan -They are expected to remain same.
  3. Car loan - They are also expected to remain same.