Despite improved liquidity and policy rate cuts by the central bank, banks have been slow to reduce lending rates for existing borrowers. MCLR-linked loan rates have seen minimal reduction (5-15 bps), while past rate hikes were more fully passed on. Experts attribute the uneven transmission to varied credit portfolios and spreads, expecting rates to remain dynamic for some time.
RBI maintains optimism on growth, signals caution on inflation and FX volatility: Anubhuti Sahay
The Reserve Bank of India’s latest policy stance balances optimism on growth with caution on inflation and foreign exchange volatility. Analysts noted the central bank’s