Fixed deposit investors have been rejoicing a high interest rate regime for last one year when RBI last hiked the repo rate in February last year to 6.5%. However, the interest rate cycle is due for reversal and hence the rates are likely to fall sooner or later. However, with RBI holding the rate in current MPC the rate reduction exercise has been pushed further by a few months. FD investors are not complaining.
Home loan borrowers have witnessed one of the worst nightmares when the interest rate home loan shot up significantly in 2022 and 2023 after multiple repo rate hikes by RBI. Since then they have been paying higher EMIs and eagerly waiting for the interest rate to come down. Their wait seems to be getting longer as RBI holds the repo rate however, there are many other steps they can take to reduce their home loan EMIs.
India Business News: If fixed deposits are your go to investment avenue, then the RBI monetary policy meet has good news for you. RBI governor Shaktikanta Das announced that the MPC has decided to keep the repo rate unchanged at 6.5%. This means that the higher interest rates offered by banks on FDs are unlikely to come down anytime soon.
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