Banking · Retail Banking
A bank is preparing its Mortgage Advice for a borrower considering a choice between a Fixed Rate Home Loan and a Floating Rate Home Loan. What key macroeconomic factor should the advice emphasize?
- 1The historical volatility of the Stock Market Index.
- 2The current and expected future trend of the RBI's Repo Rate and the resulting impact on the bank's Benchmark Interest Rate.✓
- 3The historical average price of crude oil.
- 4The expected inflation rate only in the real estate sector.
Correct answer
The current and expected future trend of the RBI's Repo Rate and the resulting impact on the bank's Benchmark Interest Rate.
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