Will banks start reducing fixed deposit (FD) interest rates now? All eyes on RBI MPC announcements on August 10

With the RBI expected to begin a series of repo rate cuts starting June and August 2025-potentially totaling 1.25% by March 2026-banks are likely to start reducing fixed deposit (FD) interest rates soon. Recent repo rate cuts have already prompted some banks to lower FD rates, and further reductions are anticipated as the RBI continues its easing cycle to support economic growth. Savers should consider locking in current FD rates before the next RBI MPC announcement on August 10, as rates may drop further in the coming months.