Lately the fixed deposit rates experienced a constant hike due to inflation but according to experts the deposit rates are likely to come down in the time to come. Few banks have already started to lower the deposit rates offered by them.
The Chairman and Managing Director of Bank of Baroda Mr. MD Mallya said "I think the deposit rates may come down. As far as lending rates are concerned, we will have to wait for the RBI policy before taking a call on it."
The Research Head at StanChart Mr. Samiran Chakrabarty said “Generally during the first half of the fiscal the credit demand is leaner and we are also seeing an easing of the liquidity situation. This, along with the fact, that towards the fiscal-end and April banks have incremental capital may be the reason for cut in rates."
The Reserve Bank of India is going to announce annual credit policy for 2011-12 on May 3 and is expected to hike the lending rates further by 25 basis points. Presently the short-term lending (repo) rate now stands at 6.75% and the borrowing (reverse repo) rate at 5.75%
Experts believe that the dip in the deposit rates is not likely to stay for a very long time.
