The ongoing conflict between Iran and the US is now affecting economies across the world. One major impact is the sharp rise in crude oil prices, which could increase inflation in many countries, including India.
Because of this situation, many fixed deposit (FD) investors are confused.
They want to know whether this is the right time to invest in FDs or if they should wait for the Reserve Bank of India’s (RBI) next monetary policy announcement.
Experts Expect RBI to Keep Interest Rates Unchanged
Most financial experts believe that the RBI is unlikely to change interest rates in its upcoming policy meeting. According to them, the central bank may prefer to stay cautious because of rising global uncertainty.
Economist Dharmakirti Joshi from CRISIL said inflation risks are increasing due to the growing tension in West Asia.
He explained that although retail inflation and core inflation are currently under control, the situation could worsen if the conflict continues for a longer period.
He also said the RBI is expected to follow a “wait-and-watch” approach for now and may keep the repo rate unchanged.
Saurabh Jain, CEO and Co-Founder of Stable Money, shared a similar opinion.
According to him, the RBI may continue with its current supportive policy stance while closely monitoring inflation data and overall economic conditions.
Should FD Investors Invest Now?
Experts believe current FD rates are still attractive, even though some banks have slightly reduced deposit rates in recent months.
Saurabh Jain advised investors not to wait too long in the hope of getting better rates later. He said locking money into FDs at current rates could be a smart decision before the interest rate cycle changes.
Adhil Shetty, CEO of BankBazaar, also said that waiting for the RBI’s next meeting may not provide much benefit.
According to him, there is very little possibility of a major rate cut in the near future, and investors are already getting stable and decent returns on fixed deposits.
Why Waiting Too Long Could Be Risky
Experts say investors should remember that market conditions can change quickly. If RBI policies later improve deposit rates, investors can always shift or upgrade their deposits.
However, simply waiting for future rate hikes may cause investors to miss the good FD rates currently available in the market.
