Borrowing costs may not fall but deposit rates have already come down with which the public may earn less returns.
There is no change immediately in the loan rates but soon it will be reduced which has given some hopes to the borrowers. The base rate will not come down immediately because credit demand in not there in the market and there are no issues relating to the liquidity in the market.
Credit has not picked up and there is sufficient liquidity in the market because the corporates have various options to raise and meet the financial requirements. The investment climate is yet to change at a greater pace.
“At this point of time, the credit demand is not exceedingly healthy. If credit demand picks up, there won’t be lowering of deposit rates. If it does not pick up and there is a lowering of deposit rates.
