Home, auto and consumer loan rates are unlikely to move up in the near future despite a 0.25 percentage points hike in the key policy rates with bankers today assuring that they will not make loans dearer anytime soon as liquidity is sufficient in the system.
Top bankers like the State Bank, ICICI Bank, HDFC Bank, Union Bank and Bank of Baroda, among others said shortly after the RBI policy announcement that none of them are planning any hike in the lending rates in the near-term.
“Whatever has been done in the policy has reduced the supply. So definitely there is an upward bias in rates. As credit demand increases, there will be a demand-supply gap, and then there is a possibility of interest rates going up,” SBI chairman OP Bhatt said.