Five factors point to rising interest rate risk for borrowers : News Reel: Business Today
Business Today
Loading...
 

Five factors point to rising interest rate risk for borrowers

Anand Adhikari | March 31, 2021

The interest rates seem to have bottomed out in the economy. The benchmark repo rate , which saw a decline from 8 per cent seven years ago to 4 per cent in May last year , is now steady at the current level. The repo rate is the rate at which banks borrow funds from RBI. It acts as a benchmark for fixing interest rates for home loans and other loan products. While the  Government and the RBI is trying their best to keep the interest rate low, but five factors point to rising interest rate risk for the borrowers. These are rising retail inflation, higher international crude prices, second Covid wave, higher G-Sec yields and gradual rise in banks term deposit rates.

ALSO WATCH | Cryptocurrency Ban: Regulatory Framework for assets like Bitcoin, Ethereum & Ripple

ALSO READ |Debit card, credit card auto-payment: What are the big changes?

READ MORE | Hardening G-Sec yields to push up borrowing cost for govt, corporates



    More from this section