New Delhi: If high interest rates of your home loans have become a big headache for you or if the high interest rates have scuttled your plans to own a dream home, take heart! The interest rates may have already reached the peak of its cycle and if at all, the rates will only go down from now.
Or that is the hint State Bank of India Chairman O P Bhatt dropped on Tuesday when he said "the interest rate cycle has more or less peaked." He said the interest rates would remain stable in the short term.
On the liquidity position, the SBI Chairman said there is slight pressure on liquidity, but there was no shortage of credit for the 'productive sector.' There are various instruments at bank's disposal to improve the liquidity crunch, he said.
The country's largest commercial bank had last month hiked its benchmark prime lending rate (PLR) by half a per cent to 11.5 per cent following the RBI's move to increase the Cash Reserve Ratio. Referring to Finance Minister P Chidambaram's proposal to utilise part of foreign exchange reserves for infrastructure, he said it was a good idea, but banks would have to wait for the fine print of the government's policy in this regard.
The Union Ministry of Finance has set up an expert committee headed by Finance Secretary Ashok Jha to work out a road-map for the utilisation of forex reserves for the infrastructure sector.
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