Fed rate hike impacts Indian borrowers and investors
pre-market1 source ↓written by the desknot a recommendation
- policy rate
- 25 basis points
- on 16 Sep
- 3.75-4%
- Treasury yield surpassing
- 5%
- bond yield reached
- 7.1%
- repo rate hike
- 25 basis-point
The US Federal Reserve raised its policy rate by 25 basis points to 3.75-4% on 16 Sep 2023, marking its first hike since 2023. This led to the US 10-year Treasury yield surpassing 5%, while India's 10-year government bond yield reached 7.1%, a four-month high. With expectations of a 25 basis-point repo rate hike by the RBI in October, borrowers should consider part-prepayment of home loans to mitigate rising costs.
Not investment advice. For informational purposes only.