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Data Drive: Rate of transmission

The sustained decline in MCLR and the periodic resetting of loans at lower rates have benefited borrowers.

However, that is going to change now after the rate hike.
However, that is going to change now after the rate hike.

While the Reserve Bank of India hiked the repo rate by 40 basis points on Wednesday, the proportion of floating rate loans linked to external benchmarks rose from 9.3% in March 2020 to 39.2% in December 2021, which helped faster transmission.

The sustained decline in MCLR and the periodic resetting of loans at lower rates have benefited borrowers.

However, that is going to change now after the rate hike.

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