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Deposit rates in India may have bottomed out, indicating tighter liquidity
Rising deposit rates in India hint that liquidity may have bottomed out, potentially increasing credit costs and influencing investor sentiment.
On 4 November 2025, data from India’s banking system showed the weighted average cost of fresh rupee time-deposits rose for the first time in six months. Bankers interpret this as a signal that deposit rates may have reached their floor, suggesting a modest tightening of liquidity conditions even as growth momentum remains. This trend could impact credit costs and investor sentiment in the near term.