The `blame' for the rate hike will be mostly put on the Reserve Bank of India, which hiked its transaction rates (a 25 basis-point reverse repo rate hike in pure bank jargon). HDFC's action has been attributed to this RBI move, and other lenders are likely to take a cue and pass the buck on to RBI.

In the meanwhile, reports that the National Housing Board has hiked its re-finance rates by 25-50 basis points for second-tier housing finance companies with effect from January 31 could mean that banks depending on NHB, like Dewan Housing Finance Corporation and others, will hike their rates as well. The home loan interest rate graph, in fact had been oscillating between 6.5 per cent and 9 per cent in the last 18 months, which is said to be the one of the most vibrant phases for the home loan sector in recent times.

---