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Rate cuts transmission moderated in May 2026: RBI
In May 2026, the Reserve Bank of India (RBI) reported a moderation in the transmission of rate cuts following a significant monetary policy shift. Between May 2022 and January 2025, the RBI raised the repo rate by 250 basis points to combat inflation, while from February 2025 to April 2026, it reduced the repo rate by 85 basis points. This dynamic is crucial as it reflects the central bank's efforts to balance economic growth and inflation control, impacting lending rates and overall economic stability.
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