RBI set for rate cut, banks’ cost of funds may not drop
Despite RBI's repo rate cuts, deposit rates remain high, impacting banks' cost of funds. While home loan borrowers benefit, depositors see limited gains due to investor shifts and liquidity pressures. Experts anticipate further repo rate cuts, but transmission to deposit rates will be gradual, influenced by banks' liquidity coverage and policy stance.
Despite RBI's repo rate cuts, deposit rates remain high, impacting banks' cost of funds. While home loan borrowers benefit, depositors see limited gains due to investor shifts and liquidity pressures. Experts anticipate further repo rate cuts, but transmission to deposit rates will be gradual, influenced by banks' liquidity coverage and policy stance.
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