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Mumbai, July 6 (PTI) Leading home loan lender HDFC today said an immediate hike in lending rates is unlikely, notwithstanding an increase in key lending and borrowing rates by the RBI last week. "In the very short-term, I do not see any hikes by banks and non-banking finance companies," HDFC vice-chairman and chief executive Keki Mistry told reporters here. The apex bank last Friday hiked its short-term lending and borrowing rates (repo and reverse repo) by 25 basis points to 5.5 and 4 per cent respectively to tighten money supply in view of the rising inflationary pressures. Headline inflation has already crossed double-digit mark in May at 10.16 per cent while food price rise has eased a bit by the third week of June to 12.98 per cent. But the recent fuel price hike is likely to further drive the inflation rates in the coming days, according to analysts. Contrary to suggestions from his peers that credit offtake has been low in the first quarter of this fiscal, Mistry said HDFC has witnessed "very strong" numbers in the period. "I cannot share the numbers, but they are very strong," Mistry added. On continuing with the teaser rates for home loans, he said it has arrived at the rate based on the cost of funds and as the cost has been low, it was deemed it right to pass on the benefit to customers. HDFC had last week announced the continuation of its concessional home loan rates under which clients pay a fixed rate of 8.25 per cent till March 2011 and 9.25 per cent for the next year, after which prevailing rates become applicable. Meanwhile, the market and analysts are expecting another round of rate hike by the the Reserve Bank at its first quarter monetary policy review slated for July 27.
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