As the world economies grapple with high inflation, global bankers have tightened monetary policies and increased interest rates. This in turn, has spooked the markets as fears of a slowdown in economic growth looms.
The recent jobs data in the US has further substantiated fears of another 75 basis points rate in the next meet. Last month, the RBI hiked interest rates by 50 bps for the third time in a row, taking the benchmark rates to 5.9 per cent. Following which, several banks and non-banking financial institutions have hiked rates on home loans.