A rise in benchmark yield may make home and car loans costlier
Q: Hi heard that rise in benchmark yield means the cost of funds for banks and other lenders would also rise may lead to higher interest rates for all types of loans, including home, cars . Please discuss
Actually the rupee weakened by seven paise to close at 62.48 to a dollar as oil companies were back in the inter-bank market to buy dollars and also due to cross-currency considerations as Euro weakend.
Hey heard that RBI had provided a special window to oil companies to meet their dollar demand for importing crude oil oil by buying directly from the central bank, and not the interbank market. Since oil companies are the biggest dollar buyers in the country, the decision had helped strengthen the rupee from about 69 to 61 in less than a month.
Yes Deepankar, the Yield on the 10-year government bonds has considered the benchmark for the rate of interest in the market which shot up to 9 perc.Within two days SBI and HDFC will be raising their rates.