RBI satisfied with the pace of monetary transmission, says Shaktikanta Das
MUMBAI: Governor of Reserve Bank Shaktikanta Das on Thursday expressed his satisfaction with the bankers for passing their rate cuts to borrowers, saying that the monetary transmission has been complete and reasonably fast.
In addition, he said that the transmission, which was bothering the central bank for a long time, is expected to improve with the introduction of linking loan prices with the external reference system, which banks have now adopted.
Das said the weighted average interest rate has dropped 44 bp in fresh rupee loans.
He also said that there are indications of the cycle of capital spending, a slow pace in which economic growth is hurting, appearing.