Wednesday, July 27, 2011

RBI RATE HIKE

The Reserve bank of India has increased the repo rate by 50 basis points. This seems like an aggressive move ... and might impact eonomic growth. This hile will impact real estate companies as there cost of loans will increase.Banks like HDFC, SBI, Bank of India have said that they would have to pass on the rate hike to the consumers as well as increasing shot term deposit rates, they are optimistic about growth on their loan book despite rate hike but fear high NPA's(non performing assets). The RBI governor still expects the economy to grow at around 8% more or less.




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