Rates to rise again

Borrowers can absorb up to 200 bps increase, says Deepak Parek, hariman of HDFC the India’s largest mortgage lender

The country’s largest home loan player HDFC today said that it may have to raise lending rates further if the Reserve Bank of India (RBI) increases key policy rates in the forthcoming monetary policy review on July 29 2008.

Mr. Parekh needs to go and see how streach the Indian middle class is already with the golloping inflation. Essentials have risen sharply and so have all other cost. Jobs which were so easily avaible are scarer and all perks and bonus are cut down.

How are we to face still another 2% rise in rates?