Policy rate cuts and pace of transmission: Tracking an impactful five months in 2025

August 4, 2025

The Reserve Bank of India (RBI) reduced the repo rate by 100 basis points between February and June 2025, bringing it down to 5.5%. Banks responded with a 58 bps drop in the weighted average lending rate (WALR) on fresh loans in June, reaching 8.62%.

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