Policy transmission improves post external benchmarks

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Transmission of policy rates through both lending and deposit rates improved since the Reserve Bank introduced external benchmark linked lending rate, according to study by RBI economists. The cumulative reduction of policy repo rate by 250 basis points (bps- one bps is 0.01 per cent) between February 2019 to June 2021 has resulted in 155 … Read more

Indian economy ‘weak’, credit growth bottoming out: Report

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American brokerage BofA Securities on Friday said the Indian economy continues to be “weak”, pointing to activity indicators tracked by it. On the positive side, the brokerage said credit demand is bottoming out and the real lending rates adjusted for wholesale price inflation are falling. It can be noted that there has been a slew … Read more

SBI cuts MCLR by 5-10 bps for short-term loans. Here are the latest rates

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The State Bank of India (SBI), India’s largest public sector lender, announced Wednesday morning that it has reduced its marginal cost-based lending rate (MCLR) by 5-10 bps for shorter tenor loans (i.e., up to three months). According to the bank’s press release, the new rates will be effective from July 10, 2020 and that it … Read more