Will interest rates rise in 2022
Are all types of debt heavy?
The US Federal Reserve last week decided to raise interest rates by 25 basis points. Announced that there would be an increase some more times this year. With this, it is expected that the minimum interest rates will rise globally from now on. If the same is true the burden of interest rates on all types of loans will increase. In terms of corona, the Reserve Bank has been keeping policy interest rates stable at around 4 per cent for the past two weeks. Predicts that maintaining low interest rates could pave the way for economic growth. However it did not dare to reduce policy rates to less than 4 per cent. This makes it clear that even in our country, interest rates have fallen to an even lower level.
What if rates rise?
The RBI is expected to raise the repo rate from 4 per cent to 4.1 per cent or 4.25 per cent in its monetary review next month. If this happens then interest rates on all types of loans will go up. The burden of interest rates on home loans, personal loans and credit card loans will increase and affect EMIs. However, even if the interest rates on term deposits increase in line with the policy rates, the interest rates on savings deposits may not increase significantly.