. Negative real rates are here to stay. Here's what MF newbies can do about it - Trade FX, CFD, Stocks, BTC, Indices, Gold & Oil - 1:1000 Leverage & Bonus - CSFX

Negative real rates are here to stay. Here’s what MF newbies can do about it

Negative real rates are here to stay. Here’s what MF newbies can do about it

02 Jul 2021

What are negative real rates? Suppose you earn 4 per cent per annum on your savings in the bank. The inflation in the economy is 6 per cent. What value add has actually happened to your savings? You guessed it right. The value has eroded by 2 per cent. This is what a negative real rate is. The nominal interest rate, or the RBI policy rate, is at multi-year low of 4 per cent (even lower due to excessive liquidity). The inflation is inching