Interest rates and your investments

Interest rates are the price of money. The RBI's repo rate (the rate it lends to banks at) sets the tone for FD rates, loan EMIs and bond yields.

• Rates up → new bonds pay more, so existing bond prices fall (debt-fund NAVs dip); FDs get attractive; equities can wobble.
• Rates down → bond prices rise (gilt/long-duration funds gain); borrowing cheapens, often helping stocks.

Knowing the rate cycle helps you pick between equity, short-duration and long-duration debt.

→ Track the macro backdrop on the Macro Economy page.