RBI's 100-bp repo cut in repo rate leads to 71 bps cut in fresh rupee loans

Banks have started passing on the 100-basis point repo rate cut by the Reserve Bank of India over the past three policy meetings

Following the 100-basis point cut by the RBI’s MPC since February, the weighted average lending rate of banks has declined by 71 bps for fresh rupee loans and by 39 bps for outstanding rupee loans between February and June. On the deposit side, the weighted average domestic term deposit rate on fresh deposits moderated by 87 bps during the same period. One basis point is one-hundredth of a percentage point.