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.
Data source: RBI, Equitymaster |
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