RBI’s 25 bps interest rate cut and change in monetary policy stance to accommodative couldn’t have come sooner. Its focus now needs to shift to providing more liquidity for banks. It is equally important that RBI ensures the rate cut is transmitted to bank lending rates and the wider economy.
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Rates are down to a nine year low. In 2010, the world was battling an immense crisis, there was a real risk of a global depression. Aaj aisi kaunsi emergency aa gay hai …
Read a column in BS which explains that bank deposit growth is lagging the growth in bank credit. Households are saving less. That makes banks reluctant to cut deposit rates. Government expenditure and borrowings are crowding everyone else out.