The Reserve Bank of India’s (RBI)
Monetary Policy Committee (MPC) headed by Reserve Bank of India (RBI) Governor Shaktikanta Das kept the repo rate unchanged at 4 per cent for the 10th consecutive time while maintaining an ‘accommodative
stance’ as long as necessary. The reverse repo rate will continue to be 3.35 per cent. The central bank had last revised the policy
rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting the
interest rate to a historic low.
The
Marginal Standing Facility (MSF) rate and bank rates remain unchanged:
·
Policy Repo Rate:
4.00%
·
Reverse Repo Rate:
3.35%
·
Marginal Standing
Facility Rate: 4.25%
·
Bank Rate: 4.25%
·
CRR: 4%
·
SLR: 18.00%
On Monday(14/02/2022), data released by the National
Statistical Office (NSO) showed that retail inflation, as measured by the
consumer price index (CPI), rose to a seven month high of 6.01 per cent in January, up from 5.66 per cent in December. This is the first time since June
last year that inflation has come in above the upper limit, although
marginally, of the inflation targeting framework of the RBI. Considering that
the RBI expects inflation to average 5.7 per cent in the fourth quarter
(January-March), CPI will now have to moderate considerably in the next two
months to be in line with the target.
The weighted average cut-off of the aggregate issuance
softened by 13 bps to 7.11 per cent, from 7.24 per cent last Tuesday(08/02/2022),
despite the weighted average tenor increasing to 15 years from 12 years.
This is similar to the easing seen
in the 10-year G-secs; (6.54 per cent, 2032) yield, which closed at 6.67 per
cent, 14 bps lower than last Tuesday(08/02/2022)
Compare to this background, what is the rate of bank FDs
offered?
Revision in Interest
Rates On Retail Domestic term deposits (Below Rs. 2 crore) interest rates
revised w.e.f. 15.02.2022 by SBI
All figures in % per annum)
|
Tenors |
Existing Rates for
Public w.e.f. 15.01.2022 |
Revised Rates For
Public w.e.f. 15.02.2022 |
Existing Rates for
Senior Citizens w.e.f. 15.01.2022 |
Revised
Rates for Senior Citizens w.e.f. 15.02.2022 |
|
7
days to 45 days |
2.90 |
2.90 |
3.40 |
3.40 |
|
46
days to 179 days |
3.90 |
3.90 |
4.40 |
4.40 |
|
180
days to 210 days |
4.40 |
4.40 |
4.90 |
4.90 |
|
211
days to less than 1 year |
4.40 |
4.40 |
4.90 |
4.90 |
|
1
year to less than 2 year |
5.10 |
5.10 |
5.60 |
5.60 |
|
2
years to less than 3 years |
5.10 |
5.20 |
5.60 |
5.70 |
|
3
years to less than 5 years |
5.30 |
5.45 |
5.80 |
5.95 |
|
5
years and up to 10 years |
5.40 |
5.50 |
6.20 |
6.30 |
This is why one should have Mutual funds in your portfolio
in a reasonable manner
Mutual Fund Investments are subject to market risk. Consult your
MFD and read offer document before investing
