Monday, January 24, 2011

Interest rates could go up after monetary policy review

India' central bank, which will conduct a periodical monetary policy review on Tuesday, is largely expected to hike key interest rates to curb rising inflation.This time, with food inflation again on the higher side, the RBI will look to lend a helping hand to the government in a bid to bring down prices.

Loans for automobiles, homes too could go up as banks will look to pass on the interest burden to consumers. Leading bankers have forecasted a hike in lending rates in the short-term, taking into account a hike in key rates by the RBI.

On the otherside of the Coin my suggestion for those are trading in share market,this can been seen as an investing point of view....can start investing in banking sector as well as housing stocks such as LIC Housing Finance.

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