photo credit: danchitnis
Indian buyers who have mortgages for new homes are hoping for an interest rate cut after the country’s main bank slashed the cash reserve ratio (CRR) for banks.
The Reserve Bank of India (RBI) cut the ratio by 0.50 points in the hope it will inject liquidity into the market.
The move follows several high-profile rescue packages for western banks and a week of turmoil in world stock markets.
New home loan borrowers in India are now hoping interest rates will follow suit.
The Associated Chambers of Commerce and Industry of India (Assocham) said:
“It would have been better if the premier bank had also reduced the repo rate by as many basis points.”
The group also noted reduced CRR may help India to overcome any knock-on effects of the US financial crisis.
Indian Realty News also reported some analysts said more good news could be just around the corner for the nation’s borrowers. “I suspect that there could be further cuts in rates before, during or after the credit policy [taking place on October 24]“, the site quoted stock analyser Harsh Roongta as saying.
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