Markets | Will banks soon be able to transmit lower interest rates to borrowers?
Bank deposit growth is looking up and the credit-deposit ratio is coming down
July 23, 2019 / 11:37 AM IST
The entire responsibility for reviving growth in the economy now rests on monetary policy. Policy makers have only one weapon in their arsenal -- getting the cost of capital down. The hope is that lower interest rates will make consumers start to borrow for buying houses and cars and consumer durables, while lower interest costs will increase profits and induce businessmen to expand their operations, thus leading to a recovery. We do not know whether this policy will work...