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Rate transmission to gain momentum amid easing liquidity

ICICIdirect Research 07 Apr 2025 DISCLAIMER

RBI through OMOs and currency swap  has turned liquidity in the banking system positive at ₹1.42 lakh crore. Banks were reeling under pressure from elevated cost of funds

In parallel, several banks—including HDFC Bank—have begun to lower interest rates on selective deposits, which depicts improvement in liquidity crunch faced by the system.

Overall, RBI’s liquidity infusion and accommodative stance on liquidity, has set a tone for a sustained liquidity environment and thus a more balanced transmission of anticipated rate cut which is expected to bolster credit growth and ease pressure on margins.

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