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From Dovish to Hawkish?
This note analyses the banking sector's response to policy changes in terms of how far it has changed deposit and lending rates in recent times. Second, it studies the relationship between the median lending rate of banks and real sector growth. Third, the liquidity and credit constraints faced by the banking industry are discussed. The note concludes with a discussion of monetary and banking policy choices for supporting growth.
Team led by K Kanagasabapathy and supported by Anita B Shetty, Vishakha G Tilak, V P Prasanth, Shruti J Pandey, and Pravin S Jadhav.