Saving account interest hiked from 3.5 to 4 %.Hello friends,
I am writing this after I came to know about that RBI is raising interest rate on savings account from 3.5% to 4%. This is done to prevent common man from the burden of inflation. RBI governor Dr. D. Subbarao had said that the inflation is rising rapidly which is eating the savings of the common man. To help them this step had been taken. RBI had raised repo rate by about 50 points to keep in check the inflation. Currently the food inflation is very high and it is rising very quickly. But such hike in repo rate will decrease the marginal profit of the banks. I think the pace at which inflation is runnig will erode any benifits common man will get from these steps. Lets see what happens in future.