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Last Updated : Aug 22, 2019 10:20 PM IST | Source: Moneycontrol.com

Explained: The link between repo rate and interest rates on retail loans

RBI Governor Shaktikanta Das said that it is time to formalise the linking of lending rates on new loans to external benchmarks like the repo rate.

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The Reserve Bank of India (RBI) is once again examining the issue of linking loan rates to external benchmarks such as the repo rate.

RBI Governor Shaktikanta Das said that it is time to formalise the linking of lending rates on new loans to external benchmarks like the repo rate.

In October 2018, the Supreme Court had asked the RBI to examine whether the benefits accruing from policy rate cuts were being passed on to consumers.

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Moneycontrol's Sakshi Batra explains the link between monetary policy actions, their transmission to the broader economy and its impact on the interest rates on various retail loans like home loans and auto loans.

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First Published on Aug 22, 2019 10:20 pm
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