Transmission Faster This Time: Guv

The monetary policy transmission happened much faster this time compared to previous occasions, RBI governor Sanjay Malhotra said in the post-policy press conference, emphasizing on faster pass-through.

- Christina Titus

"That's why we have front-loaded some of our actions," he said. "It is much faster than previous times. Normally, it takes six to nine months. It has only been four months from the first policy cut," said Malhotra.

Providing data to support his point, Malhotra said the average deposit rates have declined by 27 bps while lending rates on outstanding credit have come down by 17 bps since the February rate cut of 25 basis points. "However, we need to do it faster, and that is why we have front-loaded some of our actions." he added.