Data Drive: Foreign banks and rate action

After hiking the repo rate during May 2022- February 2023, the Reserve Bank of India (RBI) paused for the first time in 11 months when the Monetary Policy Committee voted to hold the rate at its current level on April 6.

Written by Saikat Neogi

April 10, 2023 04:30 IST

Data Drive: Foreign banks and rate action

The maximum transmission to lending and deposit rates over the period happened at foreign banks, RBI data show. (IE)

The maximum transmission to lending and deposit rates over the period happened at foreign banks, RBI data show.

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This reflects a higher share of low-cost and lower-duration wholesale deposits in the total liabilities of foreign banks, which led to faster adjustment in interest rates.

This article was first uploaded on April ten, twenty twenty-three, at thirty minutes past four in the morning.