LIC Housing Finance Ltd (LIC HFL) has increased the LIC Housing Prime Lending Rate (LHPLR), the benchmark rate to which the interest rate on its loans is linked, by 50 basis points.
Commenting on this lending rate revision, MD & CEO Y. Viswanatha Gowd said: “Interest rate hike is in line with the prevailing market condition. We expect this trend to stabilise soon. We are taking care to price our products adequately so that the EMI outgo for our customers remains reasonable. We are confident that the sentiment in the Real Estate Industry will be buoyant during the festive season and the fundamental parameters of the Indian economy will continue to be strong.”
According to a research report from the State Bank of India’s Economic Research Department, the RBI increased the Repo rate by 50 basis points to 5.90%, as was widely expected, as the MPC seeks to maintain focus on withdrawal of accommodation to ensure that inflation remains within the target in the future while supporting growth.
Since the US dollar is still appreciating, elevated imported inflation pressures are a potential source of future inflation.
“We believe that a 35 bps rate hike in December looks imminent, but beyond December, it would be a touch and go,” the report said.
