Fixed deposit (FD) investors have been struggling with the lowest interest rate cycle for the last four years. However, they may now see the return of the rising-rate era as the Reserve Bank of India (RBI) increased the repo rate from 5.25% to 5.50% in its three-day Monetary Policy Committee (MPC) meeting, announced today (Wednesday, October 7).
It is the first time since February 2023 that the RBI has increased the repo rate, as it has been a downward journey since then, as banks have mostly reduced the rate. However, supply disruptions due to geopolitical tensions, high crude prices, and the recent US Fed rate hike suggested that the RBI might also go for a hike.
