Ladder Your FDs To Create A Cushion Against Rate Changes

The Reserve Bank of India (RBI) paused policy rates in the last two monetary policy announcements in April and June 2023, but it’s not clear if it is the end of the interest rate hike cycle. The narrative may have shifted slightly with the brouhaha about rising tomato prices and surging inflation levels in June. While the US Federal Reserve is expected to raise rates yet again, RBI, too, had issued a caution in its June policy statement. “The pace of monetary tightening has slowed in recent months, but uncertainty remains on its future trajectory as inflation continues to rule above targets across the world,” it said. A report released by the State Bank of India on July 12, 2023, said: “Though retail inflation remains within the tolerance range of the RBI for the fourth consecutive month (and should remain so for the rest of the fiscal), continued vigil on the...