Home loans have either floating or fixed interest rates. And the RBI MPC has hiked the repo rate. The article looks at whether you should prepay your home loan or continue paying the EMIs in light of the new variables in the market.
KEY EVENTS:
Debt Markets yielding historically low returns now •. US FED tapering (reducing liquidity) will start soon • Equity Market Valuations are definitely stretched by all metrics (PE, PB, Marketcap to GDP) • Global Strategy of China+1 & more
On August 6th, 2021, as widely anticipated, the RBI Monetary Policy Committee decided to keep all key benchmark rates unchanged. Out of the 6 members who voted, 5 members voted for keeping the repo rate as is and not to make any changes and to retain the “accommodative” stance. One member (Prof. Jayanth Varma) voted against it. Let’s delve a little deeper and understand what are the important points to learn from this event.
Almost all of us as equity investors are worried and bothered by the 58 K CONUNDRUM - Will this last? What are the macro economic factors that could trigger a fall at 58 K levels of the markets?
Let’s get some answers in a simple, clear manner.
