BusinessPhoto: News18 BusinessRBI Study Finds Banks Pass Repo Rate Hikes More Fully Than Cuts
A Reserve Bank of India (RBI) study reveals that banks transmit repo rate hikes to lending rates more completely than rate cuts. Between March 2022 and January 2025, banks passed on 76.4% of a 250-basis-point hike, raising lending rates by 191 basis points. In contrast, during February 2025 to March 2026, banks transmitted only 64% of a 125-basis-point cut, lowering lending rates by 80 basis points. Borrowers benefit less from rate cuts than they are affected by hikes.
News18 Business·