RBI today deregulated interest rates. this is set to trigger a competition among bank to spice up the interest rates in order to attract money into their banks. This is going to be beneficial to the end user regarded more as the RBI's diwali gift.
Is this going to have an effect on the stock market? If the banks provide guaranteed income to the investor then who would like to invest in more riskier investments like stocks. Gold which used to provide a safer investment also looks very volatile since its now traded like other stocks. So this move is customer friendly and is sure to have an impact on the stock market, but need to keep a close watch on how much will it impact.
Banks have started increasing interest rates for savings bank deposits. Banks that have relatively low savings deposits are luring the customers to open savings account in their banks. Banks that have more savings deposits are not expected to hike the interest rates unless large number of people start moving out of their banks. Surely this is going to help the customers, however the affect may be slow.
Is this going to have an effect on the stock market? If the banks provide guaranteed income to the investor then who would like to invest in more riskier investments like stocks. Gold which used to provide a safer investment also looks very volatile since its now traded like other stocks. So this move is customer friendly and is sure to have an impact on the stock market, but need to keep a close watch on how much will it impact.
Banks have started increasing interest rates for savings bank deposits. Banks that have relatively low savings deposits are luring the customers to open savings account in their banks. Banks that have more savings deposits are not expected to hike the interest rates unless large number of people start moving out of their banks. Surely this is going to help the customers, however the affect may be slow.
