RBI leaves repo rate unchanged, FD rates unlikely to move higher for now

The central bank's decision to keep the policy rate at 5.5 per cent, and inflation projected to stay low, means that fixed deposit rates are not likely to be revised upwards

The Reserve Bank of India's Monetary Policy Committee this week left its repo rate, also known as the policy rate, unchanged at 5.5 per cent. The decision follows the central bank's earlier moves to cut the repo rate by 100 basis points in three instalments as part of its strategy to front-load economic growth. With inflation remaining below the RBI's estimates, and likely to decrease again, most economists say that this is where the policy rate is likely to remain for a while. This also means that fixed deposit (FD) rates are unlikely to go higher than their current levels,