Bank FD Rates have peaked now. CRR down from 4.5% to 4%

[SSV]

RBI' MPC decided that CRR to be cut by 50 basis point from 4.5% to 4% ..
CRR= Cash Reserve Ratio .. ( the cash that need to be kept as a reserve which could not be available for lending )..

This redcution in CRR means the banks now have more funds ( liquidity) for lending from their deposits.. means Banks dont need to pay more interest to get more deposits..

Means: FD rates have peaked .. Book your FDs now for the maximum FD rate.. FD rates may go dwon in future..
An official Repo rate cut is on the cards for Feb meeting ...

All the best ..

 

[Vickymaster1010]

good i booked via stable money at 9.1 % i am happy and blessed

 

[sunit123]

Corporate are happy...They will get loan at lower rates which they might not to repay

 

[desiviru]

FD rates will come down as was assumed some 6 months ago...
So, All prospective FD investors act now to get better rates..

PL borrowers, wait for a few weeks to get cheaper loans..

RBI Cuts Repo Rate By 50 Basis Points: What It Means For Loan EMIs

The Reserve Bank of India (RBI) has slashed its key lending rate, or the repo rate, by 50 basis points to 5.5% as inflation softens within its comfort level.

www.ndtv.com

Went with 3 years term till March 2025 for all FDs that were renwed, although was 0.25% low then other special term FDs.

After 2 years it will start increasing again. So took a longer term view.

Wasn't expecting any cut today but 0.50% is a shock to me too. 🙁 Will shift 25% to equity market but only when I see it good to invest.