What does a rate cut after 5 years mean for the economy? Dinesh Kumar Khara explains

February 7, 2025

Dinesh Kumar Khara emphasizes that the adoption of the repo rate as an external benchmark by banks will ensure quick transmission of policy rate changes into loan rates. However, deposit rates adjustments might lag. He highlights the importance of market liquidity and other measures announced by RBI to support economic growth and address short-term liquidity concerns.

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