RBI cut repo rate in Feb. Why did it take so long for banks to reduce interest rates?
The Reserve Bank of India (RBI) initiated the much-expected rate-cut cycle in February. The repo rate was cut from 6.5% to 6.25% on 7 February. A rate cut leads to an easing of interest rates on loans. However, loan rates have just started easing, after a rather longer transmission period. Rate cut transmission Let us…
