Indian Bank to cut interest rates from 18th July

Indian Bank will cut interest rates for the 181-365 day deposits by 175 bps to 7% from 18th July. As indicated in my blog dated 29th June Inflation at 4.28%, Hits 14-month low, the impact of the lower inflation rates are slowing making banks reduce the deposit rates and lower home loan rates as well (Pls see ICICI Bank cuts home loan rates by 25-50 bps). There were other news also about the yields dropping for the new fixed maturity plans that were being issued in the recent past when compared with the yields of the recent past.

However, if the international interest rates increase, there is again the possibility of domestic interest rates increasing in tandem with the global rates. We will have to wait and watch.