Housing Development Finance Corp,India’s top mortgage lender,expects the RBI to raise interest rates in the March quarter on inflationary concerns,its chairman said on Wednesday.
“It would be a token,marginal hike. It is just to give a signal that the government and the central bank is concerned about inflationary pressures,” Deepak Parekh said on the sidelines of an industry conference.
He said a jump in residential prices was a concern on initial signs of demand reviving.
Indian real estate firms have been quick to raise prices by 15-20 per cent in the past two months as residential demand picked up after a slump of more than a year and as mortgage rates stayed low.