Key Points
All thanks to the repo rate hike, the interest rates on fixed deposits have touched 8% at well-known public and private sector banks..
With the new financial years first Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) scheduled this week, all eyes are on the regulators to get an idea of what the future holds for FD investors..
Answering this, Jahnavi Prabhakar, Economist, Bank of Baroda, says, "Monetary Policy Committee in the upcoming RBI policy meet is likely to retain the repo rate and continue with the withdrawal of accommodation stance."..
Given that the RBI governor has been highlighting the aim of getting inflation to 4% on a durable basis, the policy rates are likely to be kept on hold in the upcoming policy meeting, with no change in stance," says CareEdge in its report, RBIs Policy Preview: A Balanced Policy with Focus on Liquidity"...
Vipul Bhowar, Director, Listed Investments, Waterfield Advisors, says: "As deposit growth lags loan growth, banks are trying to narrow the gap with a steady increase in rates; hence, the current pause in repo rates signifies that depositors can continue to benefit from high-interest rates on deposits."..
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