RBI Monetary Policy: MPC keeps repo rate unchanged at 4 per cent, says RBI Governor Shaktikanta Das
New Delhi, Aug 06: The Reserve Bank of India (RBI) on Thursday decided to keep the key policy rates unchanged with accommodative stance. The pause has come after two consecutive rate cuts, in March and May 2020.
It can be seen the repo rate and reserve repo rate remain at 4.00 per cent and 3.35 per cent, respectively.
A status quo on rates could be good news for fixed deposit investors as banks have been continuously cutting rates on deposits for more than a year now. Some FD tenures now fetch lower interest rates than savings accounts.
For borrowers, a pause on rate cuts by the apex bank, could mean that banks too will pause cutting interest rates on loans. A pause in the repo rate reduction is likely to prompt banks to go easy on cutting FD rates. In the month of May alone, the State Bank of India reduced its FD rates twice.
Those who depend on FDs for fixed and regular income, can consider small saving schemes like monthly income account, post office time deposit. For the June-September quarter of 2020, the government kept rates of small savings schemes unchanged from the previous quarter.