FD Investment Update: Amidst Iran-US tensions and fears of rising inflation, the question for FD investors has become important: whether to invest now or wait for the next RBI policy.
Invest in FD now?
FD Investment Update: The impact of the ongoing Iran-US war is being felt worldwide. With crude oil prices rising, the likelihood of inflationary pressures returning is increasing. Many FD investors are wondering whether they should lock in current rates now or wait for clarity after the Reserve Bank of India's (RBI) upcoming monetary policy review.
Experts performing the procedure
According to most experts, the RBI will maintain its current position in its upcoming policy meeting, leaving interest rates and policy stance unchanged, given growing geopolitical uncertainty. Dharmakirti Joshi, chief economist at Crisil, said the RBI is likely to adopt a cautious stance given inflation.
He said, "We expect the RBI to keep the repo rate and policy stance unchanged in the upcoming monetary policy. This is because the risk of inflation is rising, and it will increase further with the duration and intensity of the West Asian conflict. Currently, both CPI-based inflation and core inflation are within safe limits. He added, "The RBI will adopt a wait-and-see approach for now."
Regarding this, Saurabh Jain, Co-Founder and CEO of Stable Money, said, given the current situation, we hope that RBI will not make any changes in the repo rates for the time being and will continue to adopt an accommodative stance while closely monitoring the status of inflation data and macroeconomic conditions.
Expert opinion on FD investment
According to expert Jain, despite some softening in fixed deposits in recent months, fixed deposit rates remain quite attractive. Therefore, investing at current rates rather than waiting for the interest rate cycle to reverse may be a wise move. Investors should consider securing current rates rather than postponing investment decisions.
Adhil Shetty, CEO of BankBazaar, also weighed in on this issue, saying that if interest rates remain stable for the next few months, waiting for the June meeting won't be particularly beneficial. He added that investing now at current rates is a wise move, as there's little chance of a further rate cut. Interest rates are on the verge of a significant drop. Everyone is receiving good and stable returns.
Experts say that investors should always keep in mind that stability is always present in the market. If future RBI policy decisions improve deposit rates, deposits can be upgraded. Simply waiting for a rate hike could result in missing out on the current market rates.
