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.
US stocks: US market closes down sharply after Fed holds rates unchanged
Wall Street experienced a sharp decline as the Federal Reserve maintained interest rates. AI-related chip stocks also saw further losses ahead of key earnings reports.