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Community User Posted on 10:19am 12-Feb-2020

Where do you think interest rates will be one year from now?

  • Community User 6-7%

    04:50pm 12-Feb-2020

  • Community User When you say Interest rate - there are two
    Interest rate for loans and interest rate for deposit holders.
    These are y personal opinion.
    Interest rate on loan - will be reduced as Government and RBI are hell bent on reduction of lending rate. Their main aim is to reduce the interest burden so that the individual will have more money which in turn will increase consumption. The recent RBI tweeks is one of its kind where they did not reduce the benchmark rate but did few things which has reduced the cost of borrowing money for banks. This eventually will reduce the interest rate on loans. The rate of reduction no one can predict but it is on the down turn.
    Interest rate on Deposits - When a bank is able to get money for lending from RBI at 5.20% for three years, then the deposits rate need to come down. As most of indians save in the form of deposits, a marginal reduction will definitely improve the margins of banks. Hence I do feel that the deposits will also reduce. Banks have already reduced the rate to its rock bottom of 6%.

    11:41am 13-Feb-2020