The country's leading housing finance company HDFC's chairman Deepak Parekh today said he expects the interest rates to soften by 0.25% to 0.50% if there is no hike in the cash reserve ratio."Lending rates may fall down by 25 basis points in first quarter of the next fiscal (March-June) if RBI does not hike the CRR rate," Parekh said here.Parekh said that India should not witness the flood of forex inflow going forward as has been the case in the recent past because investors in India were cashing out and there was lot of redemption in the US.
