The Reserve Bank of India is all set to announce its monetary policy today and this one is not going to a status quo meet. The central bank is largely expected to raise reverse repo rates anywhere between 15-25 bps while keeping key lending (repo rate) unchanged.
This would mark the first hike reverse repo rate since August 2018 and is already spelling good news for savers as savings rate on FDs have started to inch up in anticipation.
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Borrowers can enjoy this golden period of low rates for a while as economists do not see a hike in the key lending rate to come in before the June policy. However, most do anticipate a shift in the stance of the RBI with inflation reigning high and growth on track.