CD rates diverge as liquidity surges, rate hike bets rise

Within the Indian financial landscape, the contrast between short- and long-term certificate of deposit rates is becoming increasingly evident. Short-term rates are experiencing a decline thanks to heightened liquidity from foreign currency inflows. Conversely, long-term rates are climbing, fueled by expectations surrounding future interest hikes. Financial experts warn that borrowers could face higher costs as both inflation and global interest rates continue to rise.