Bank deposits show slow response to repo rate cuts
after close1 source ↓written by the desknot a recommendation
- deposits is only
- 34%
- cut
- 125-basis-point
- decreased by just
- 42 basis points
Data from the Reserve Bank of India indicates that the pass-through of repo rate cuts to outstanding deposits is only 34%. Despite a 125-basis-point cut, term deposit rates have decreased by just 42 basis points. This modest transmission suggests banks are cautious about repricing existing deposits, which may impact their ability to attract and retain funds.
Not investment advice. For informational purposes only.