Banks are currently lowering interest rates on deposits even as inflation remains high. According to The Business Standard, industry experts explain that a combination of robust deposit growth, significant excess liquidity, and weak demand for loans has diminished the necessity for banks to offer higher rates to attract new deposits.
Economy
Why are banks lowering deposit interest rates amid high inflation?
Despite persistent high inflation, banks are reducing deposit interest rates. Bankers attribute this trend to strong deposit growth, excess liquidity, and sluggish loan demand.
Source: The Business Standard