ICICI's hike is expected to be followed by other banks. An HDFC spokesperson said senior managers would meet on Monday to decide the course of action.
The overall increase in lending rates is also expected to depress, among other things, demand for cars. Says a Mumbai-based Maruti dealer: ``It is a double whammy for car buyers, who faced an increase in car prices after the budget.''
But it may not be all gloom. In the last one year, real estate prices have gone through the roof due to sustained demand and low home loan interest rates. A prominent builder expects prices to ease a bit if demand for new homes drops after the current hike, making homes more affordable. Says the builder: ``The price increases slowed down after the interest rate hikes in the last few month. This time, prices may actually drop.''
Source- TOI, 01-04-07
