RBI likely to hike interest rates in Q4 FY 10: Parekh | business | Hindustan Times
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RBI likely to hike interest rates in Q4 FY 10: Parekh

business Updated: Oct 07, 2009 14:10 IST

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The Reserve Bank is likely to hike interest rates marginally in the fourth quarter of this fiscal to rein in the steady rise in prices, a top financial sector expert said.

"To give a signal that the Government is concerned about inflationary pressures, there is a chance of a marginal hike in interest rates in the January-March 2010 quarter," HDFC Chairman Deepak Parekh told reporters in Mumbai.

The hike in interest rates could be by at least 0.5 per cent, he said, adding, however, that any hike in rates was unlikely to happen in the current quarter.

On liquidity Parekh said, at present it was sufficient.

With a revival in the economy and pick-up in construction activities, banks could witness a growth in their wholesale loans going forward, he said.

However, any pick-up in loans to the commercial real estate sector is unlikely, he said.

"I don't see commercial real estate loans picking-up ... there are a large number of commercial real estate properties that are ready to be occupied," he said.

Banks have seen an increase in their housing loans portfolio in recent months, Parekh said.