RBI's repo rate cut means a fall in fixed deposit rates. Here's why
Updated : May 22, 2020 03:13 PM IST
When repo rates are reduced by RBI, the utmost benefit is enjoyed by the commercial lenders as they can borrow funds from RBI at lower rates.
However, this may also compel lenders to reduce the interest rates of fixed deposits, says Hemant Sood, Managing Director, Findoc.
Although, the impact of these announcements are not always immediate.