InvestorQ : Are there any chances that KVP, PPF and NSC interest rate might increase as their Indian economy is getting recovered?
Suresh Patil made post

Are there any chances that KVP, PPF and NSC interest rate might increase as their Indian economy is getting recovered?

Answer
image
Gauravi Patel answered.
2 months ago
Follow

The situation at the moment is better than it was in March 2020 when the country was locked due to Coronavirus. But there is still a long way to go. The government and the Reserve Bank of India, at the moment, plan to keep interest rates low in order to induce people to spend and generate demand, and rightly so.

So unless we reach steady economic growth, close to or higher than that seen in pre-corona times, there is a very low scope of a hike in interest rates. And unless and until RBI tightens the repo rate, there is no chance of an increase in interest rates of PPF, KVP, and NSC. In fact, in terms of the overall economy, it is a better signal when benchmark rates are kept low.

As the reverse means inflation is spiking, which is not a good sign for a developing country like India.

0 Views