Interest rates will not harden: O N Singh

Interest rates are not likely to harden, given the government's move to bring in extra liquidity into the economy through the CRR and SLR cap removal. Neither has there been any indication of a interest rate hike.

The ministry's intention to reduce SLR and CRR, while pumping extra liquidity will also bring the Indian banks closer to global practices.

The removal of SLR cap will allow banks to invest in instruments with higher returns instead of investing in government securities.

The Budget will bring in some sort of savings habit for the middle income group.