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Upward surge in interest rates to continue
Published on Fri, Jul 18, 2008 at 21:25 in 
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CREDIT POLICY FEELERS: Sources say upward bias in interest rates will continue for some time.
New Delhi: Here is a feeler from the Finance Ministry on what to expect from the forthcoming credit policy.
Sources in the Finance Ministry say that they see a 25 basis points cash reserve ratio hike in the monetary policy, but are not in favour of a hike in the repo rate.
Sources also say that growth in money supply is likely to cool off soon.
However, consumers can expect jittery times ahead with the Finance Ministry expecting the upward surge in interest rates to continue for some time.
Experts are worried at this trend saying that any further hike in interest rates to control inflation will hit corporate profitability.
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The surge in "money-supply" is the "write-offs" of "Farm Loan Debts" of over Rs.71,000/- crores for which there is no
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