If RBI anounces another rate cut soon, will the Bank Fixed Deposit Interest rates fall?

[bihitayim]

If RBI anounces another rate cut soon, will the Bank Fixed Deposit Interest rates fall?

Expectation of RBI rate cut grows stronger after election outcome

[siva]

@bihitayim

If RBI anounces another rate cut soon, will the Bank Fixed Deposit Interest rates fall?

Fixed deposits are lagging indicators means they won’t be changed immediately alongside with policy action, it will take time for them to readjust to RBI rates. Also sometimes unless the cut is at-least 50 basis points and RBI has a dovish stand banks may not readjust them at all.