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The Economic Times

Personal Finance / The Economic Times

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Can banks increase FD interest rates as inflation crosses RBIs target of 4%?

Rising inflation has crossed the Reserve Bank of India's target, signaling potential repo rate hikes. Higher inflation and increased credit demand suggest banks might raise fixed deposit interest rates soon. Banks monitor deposit growth and credit demand before adjusting their fixed deposit rates. High yields on government securities and small savings schemes also pressure banks to increase FD rates.

16 Jul 2026 3:42 pm