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*3 hours 11 min* ago

p align=justifyThe banking industry is hoping for more rate cuts by the
Reserve Bank, which in turn, will help soften both deposit and lending
rates, a top financial industry expert said. brbrYesterday, the RBI has cut
repo rates and we hope some more reductions take place in rates, HDFC
Chairman Deepak Parekh said.nbsp;The Reserve Bank had yesterday cut its key
short-term lending rate by one per cent to eight per cent.nbsp; brbrAsked
whether interest rates could be expected to decline now, Parekh said it is
likely that deposit rates could get reduced first followed by a softening in
lending rates.nbsp; brbrOn the present liquidity situation in the system,
Parekh said, the current liquidity is enough. brbrReal estate prices should
decline, Parekh said, when asked of his outlook on the sector. Sales are
dull presently, he said. brbrDiscounts given by developers have not been
able to attract buyers, he said.brbrHigh interest rates (at 12 per cent)
were not affordable for the common man, the HDFC chief said, adding that
interest rates should be at around 8-9 per cent, which would then be
affordable for the common man. brbrResidential buyers are staying away and
will stay away till interest rates come down. Demand can pick up only if
interest rates come down, Parekh said.nbsp; brbrAccording to him, cost of
projects under construction has increased because of rising raw material
prices.nbsp; Funds crunch has derailed many real estate projects, he
said.nbsp; brbrEvery year in Mumbai, two property fairs are held. The
property fair held recently got a very poor response. Very few people turned
up for the fair, he said.nbsp; brbr(Agencies)/p

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