Rate cuts transmission moderated in May 2026: RBI
The Reserve Bank of India reports that recent interest rate cuts have not been fully passed on to consumers, with lending and deposit rates remaining uneven. Credit growth continues to outpace deposit growth in the banking sector.
Why it matters
It illustrates the challenges central banks face in managing monetary policy transmission and maintaining banking sector stability.
Transmission of the 50 basis points (bps) rate cut between March and April 2026 , was uneven across sectors, according to Reserve Bank of India’s (RBI) bulletin released on Monday (June 22, 2026).
The article provides a factual summary of a central bank bulletin without taking a political stance.
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