Where are home loan rates headed?

 KEKI MISTRY

 Managing Director

 HDFC

 I do not see long-term interest rates going down much further on a sustainable basis from where they stand today.

 This is largely due to the macro-economic factors prevalent in the economy as well as the rising inflation rate, which has resulted in negative real interest rates.

 In the short-term, however, there is some room for interest rates to fall - largely as a result of the liquidity in the system.

 In all likelihood, long-term interest rates could rise from the current levels over the next 12-24 months. For the immediate present, however, rates may remain benign.

 The credit policy, which will be announced on November 3, will reflect the Reserve Bank of India