Why FD rates are low?
Interest rates in India and across most major economies are at historically low levels due to
measures taken by central banks across countries including the RBI to support economic growth in
the aftermath of the pandemic.
There are 3 key reasons why deposit rates in India are on the lower side – 1) low offtake of credit
demand in the economy; 2) reduction in RBI repo rate & 3) lower level of inflation in the economy.
