The Reserve Bank of India has maintained a status quo on repo rate and reverse repo rate today at MPC meet. In previous two consecutive monetary policy meets the benchmark rates were slashed by total of 250 bps, following which banks were constantly slashing lending rates and returns on Fixed Deposits at the same time.
Owing to the pause on repo rates, we can hope that further south turn on fixed deposit should stop now. It certainly should be a good news for Fixed Deposit investors.
Likewise this could also result in pause in fall of lending rates on loans. Since March 2020, most banks have slashed Home Loan Interest Rates by 70-110 bps.
The falling rates regime had left the investors of small saving schemes little choice. Not only FD Interest Rates, the returns on other government backed fixed-return schemes were also slashed.
Amidst prevailing market volatility, many people prefer to invest in bank FDs over equities as they promise fixed returns. Particularly the senior citizens will take a sigh of relief with stable FD rates.
Updated On Jul 24, 2026
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Written By Reshma RawatAssistant Content ManagerCredit Cards, Credit Score, Personal Loan, Home Loan, etc.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
