Bad News for FD Holders: RBI Governor Predicts Further Interest Rate Cuts

• RBI Governor Sanjay Malhotra announced that FD interest rates are likely to decrease further, impacting savers.
• While the repo rate cut makes loans cheaper, it also leads to lower returns on fixed deposits.
• The RBI kept the policy repo rate unchanged at 5.25% but indicated scope for future cuts, maintaining a 'neutral' stance.
• Since February last year, the central bank has cut the repo rate by 1.25%, with further reductions expected to affect FD rates.
• The government's gross borrowing for the next fiscal year is set at 17.2 lakh crore rupees, with net borrowing at 11.73 lakh crore rupees.