The Reserve Bank of India (RBI) is encouraging banks to lower lending rates to ensure recent policy rate cuts are effectively passed on to borrowers. Financial conditions are favorable for this transmission, with banks already reducing rates following earlier cuts. A CRR reduction is expected to inject liquidity, further lowering banks’ costs and aiding monetary policy transmission.
Categories
Finance/Money
All banks need to swiftly pass on 50-bps rate cut to customers: RBI Bulletin
