New Delhi: Finance Minister P Chidambaram has clearly indicated further steps RBI is likely to take to ease the money in the system. But the multiple steps taken by the RBI have received mixed reactions in the home loan market.
While two banks - Punjab National Bank and Union Bank of India - cut their home loan interest rates by 50 bps each on loans up to Rs 30 lakh, ICICI Bank on the other hand increased their home loan rate by one per cent
“I think the market will be bit disappointed because there was some pricing of liquidity enhancement measures. If in the credit policy, RBI has made statements like deal with situations on a regular basis and will take appropriate action at a regular period or appropriate action it can then provide some sort of comfort to the market. Because RBI did act ahead of the credit policy in a significant manner and the commitment or confirmation that they will act significantly later on as and when needed can then smoothen things out in the market,” says CIO, ICICI Prudential, Nilesh Shah.
So while credit policy did not give any headline cuts - much on expected lines - analysts say that your home loan rates will take some time to cool down.
Says Chief Economist, HDFC Bank, Abheek Barua, “There is still a liquidity problem in the system. I don’t expect interest rates to be cut for at least the next one month.”
In fact the demand for home loans has also gone down significantly due to the financial crisis, high interest rates and customers’ ability to take home loans.
So in these strenuous times, customers might have to wait a little longer for that much awaited Diwali interest rate cut from your bank.
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