Fixed deposits still remain a preferred option among all the investment tools in the country.
Fixed deposits are considered to be the safest investment tool, which promises guaranteed returns with good interest rates. In the current scenario, banks are offering attractive interest rates on FD schemes. Because the repo rate currently remains high at 6.50%. Let us tell you that to control inflation, RBI had aggressively increased the repo rate, due to which financial companies had increased the interest rates on their FD schemes to attract investors. But soon these increased interest rates can be seen falling. Therefore, if you are planning to invest in FD schemes, then you should do so soon, because RBI can cut interest rates in the coming days.
Repo rate cut
According to credit rating agency Crisil, the Reserve Bank of India (RBI) can start cutting interest rates from October. This change in interest rates will depend on external factors such as weather conditions and international commodity prices. The agency further said that interest rates may be cut twice in the current financial year.
Climate change and other factors will be monitored
According to the report, RBI has not made any change in interest rates. The Monetary Policy Committee recently announced that they have decided to keep the same interest rate for now due to high food inflation. The committee said that they will monitor climate change and other factors before taking such important decisions. It was also estimated that the macroeconomic environment will improve soon, which will create the right environment for cutting interest rates.
The agency further said that this year the agricultural sector is looking better than last year, so the challenge of cutting interest rates is expected to be less. The monsoon season has been better than normal. A positive response has been seen in the cultivation of major crops in the country. The scenario of the agricultural sector will become clear by September, after which interest rates may be reduced.
