new delhi interest earning on fixed deposits may turn negative amid rising inflationary pressures as the petroleum price hike is likely to increase the rate of inflation by another one per cent deposit rates need to be jacked up if the inflation goes beyond 9 per cent uco bank chairman and managing director s k goel said we are having a meeting tomorrow where a decision with regard to increasing deposit rates would be taken he said rising inflation will put pressure on banks to jack up deposit rates in order to keep them lucrative he said for those depending on earning from deposits such as elderly people the real rate of interest will soon turn out to be negative as inflation may soar up by as much as one per cent in the coming months after the direct and indirect impact of petroleum price hikes start reflecting analysts feel real rate of interest is defined as deposit rates minus the rate of inflation which stood at 81 per cent for the week ended may 17 fixed deposits for less than one year which attracts rate around 7 per cent is already earning negative returns inflation could cross 9 per cent in the near term owing to petrol price hike said hdfc bank chief economist abheek barua inflation was over 9 per cent nearly 13 years back in september 1995 countrys largest lender state bank of india recently hiked interest rate on 23 year deposits by 025 per cent to 875 per cent the rate of interest in real terms is negligible as compared to five months back when inflation was around 4 per cent