The Reserve Bank of India is expected to delay cutting interest rates until the final quarter of the year, according to a Bloomberg survey. The RBI may reduce its benchmark repurchase rate by 50 basis points in the October-December period before pausing, due to rising inflation risks and the US Federal Reserve keeping rates steady. Governor Shaktikanta Das has maintained a hold on rates, waiting for inflation to stabilize around the central bank s 4% target. Economists predict that India s growth and inflation dynamics are healthy, but global and geopolitical developments, particularly decisions by the US Fed, could influence the RBI s rate decisions.
After RBI s status quo, investors may continue to enhance duration across debt schemes with a view of softer rates and stable liquidity conditions going ahead
The central bank’s story of the last 90 years has generally been one of stellar achievement. Its relationship with the government has been testy at times, but the bank has been steadfast in defending its turf.
A fixed deposit is an investment instrument where an amount is deposited with banks for a set period and at a fixed rate of interest. Rates on FDs are important for those, especially senior citizens, who are looking for safe investment options.