Post the Reserve Bank of India’s repo rate freeze, interest rates for FDs continue to fall. Keep reading to find out why this is an attractive opportunity for those who seek investment in FDs.
Repo Rate Freeze
The Reserve Bank of India (RBI) has decided to keep the repo rate at 6.5% in order to preserve the status quo. The fact that this is the seventh straight pause suggests a cautious but assured approach to economic growth and inflation control. On the surface, this decision might appear inconspicuous, but it has important ramifications for investors in fixed deposit (FD).
A repo rate freeze usually indicates that the central bank does not see the need to tighten or ease monetary policy right now and is content with the existing track of inflation. But for savers who depend on FDs, this lull can be the quiet before a rate change.