look news india
Whenever there is talk of saving, the first thing that comes to your mind is FD. Your investment in Fixed Deposit (FD) is not only safe, but you also get guaranteed returns. If you also want higher returns by investing in FD, then do this work quickly because in the coming days the Reserve Bank of India (RBI) may cut interest rates.
Credit rating agency Crisil has said in its report that RBI may start cutting interest rates around October, provided there are no problems from external factors such as weather conditions and international commodity prices. The credit rating agency has further estimated that it expects to cut rates twice in the current financial year.
Recently RBI did not make any change in the interest rates.
It said the Monetary Policy Committee (MPC) had decided to maintain rates on hold in its recent announcements due to high food inflation. Climatic conditions such as seasonal phenomena are changing frequently and need to be monitored. Going forward, it was anticipated that the macroeconomic environment would improve, creating a backdrop for rate cuts.
Agricultural prospects look better
“The rate cut is expected to ease the challenge for the food sector as the agricultural prospects look better than last year. The monsoon has been better than normal and sowing of major cereals has picked up pace. As the agricultural prospects become clearer by September, we expect this to pave the way for a rate cut,” the S&P arm said in its report.
