Mumbai, Jun 24 (UNI) The 50 basis point cash reserve ratio (CRR) hike is expected to suck out Rs 18,000 crore and the 50 bps hike in repo rate will push up the interest rates, said a noted Banking editor, while reacting to the hike announced by Reserve Bank of India (RBI) today.
''We are clearly set for higher interest rates, and we can expect announcement from banks hiking their lending rates soon,'' George Cherian said.
Unni Krishnan, a leading economic expert, also said the swiftness and severity of the measures announced by RBI has taken everybody by surprise.
''The moves clearly show that the government and RBI are serious about controlling inflation, and a desperate central bank and government have moved to check rising prices,'' he added.
Keki Mistry, vice chairman and managing director of HDFC, told UNI a rate hike was expected -- the only question was whether the central bank would hike the repo rate or the CRR.
''We will decide on our interest rates on June 30,'' he added.
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