Housing loan borrowers can expect some relief soon as banks and the Reserve Bank of India (RBI) are likely to go for a 1% cut in loan interest rates in the backdrop of falling inflation to negative zone in the week ended December 24, 2011 declining by 3.36%.
While bankers and experts expect the home loan rate to fall by 0.5 to 1% in the near-term, the Prime Minister's Economic Advisory Council (PMEAC) has strongly pitched for rate cut by the RBI in its monetary policy review in January 24, 2012.
Mr. M V Nair, CMD, Union Bank of India said, "There is every possibility of a decline in interest rates. unless some major events take place, interest rates should come down by at least 1%"
The RBI, which has increased key rates 13 times since March, 2010, had indicated in its December (2011) policy review that it could reverse the tight monetary policy stance in case inflation remains under control.
The Prime Minister's Economic advisory panel made a case for reduction of interest rates by the RBI in its monetary policy review.
While bankers and experts expect the home loan rate to fall by 0.5 to 1% in the near-term, the Prime Minister's Economic Advisory Council (PMEAC) has strongly pitched for rate cut by the RBI in its monetary policy review in January 24, 2012.
Mr. M V Nair, CMD, Union Bank of India said, "There is every possibility of a decline in interest rates. unless some major events take place, interest rates should come down by at least 1%"
The RBI, which has increased key rates 13 times since March, 2010, had indicated in its December (2011) policy review that it could reverse the tight monetary policy stance in case inflation remains under control.
The Prime Minister's Economic advisory panel made a case for reduction of interest rates by the RBI in its monetary policy review.
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