IIPM PUBLICATION
The debate to stay fixed or float, is passé, with persisting hike in interest rates (4 times in 2006 and a recent 25 bps after the Third Quarter Review 2006-07) consumers are now forced to think, is it better to stay rented for a while? Past records show that a hike in repo rate (rate at which RBI lends to banks in the short term to manage liquidity in the system) by RBI has translated into a hike in home loans and other lending rates by banks, across board. Recently, the Finance Minister, P. Chidambaram, assured that at least public sector banks will not hike interest rates any further. But with his recent decision to curb money supply (Feb 13th, 2006), he seems to have conveniently reneged.
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Source : IIPM Editorial, 2007
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
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