Saturday, May 12, 2012

Real interest rates on 1 year bank deposits

                                                                      Data source - RBI

After staying in the negative for most of 2010 and 2011, the real interest rates (adjusted for inflation) on one year bank deposits have of late moved back to the positive. However, banks are hoping to soon cut interest rates on deposits in line with the RBI's monetary policy. Hence, it now depends upon whether inflation remains tame enough for investors to make positive return on their money.  

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