India: Another repo rate hike may be on cards, expert says

Recently, the Reserve Bank of India hiked the repo rate by 90 basis points, bringing it to 4.90 per cent.

However, Ravi Subramanian, Managing Director and CEO, Shriram Housing Finance, said that interest rates will further go up.

He said in an interview to local media: "Another 75 basis point hike over the next 60-75 days seems a possibility, which would mean that the housing finance rate will go up by another per cent and a half for consumers in the country."

He added that he believes that another hike will not majorly impact existing loans.

Local media has reported that the finance ministry reviewed their asset quality, credit flow and capital-raising plans, and briefly discussed the consolidation exercise, in a meeting with chiefs of public sector banks.

The Financial Services Institutions Bureau will help these state-run banks, foreign investors and insurers in developing business strategies and capital raising plans, among others.

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