RBI Governor Raghuram Rajan today said that there is more room for rate cut by banks as the lenders on an average have only passed less than half of the 1.25 per cent reduction announced during 2015.
"I think if you look at 1-3 year deposits, banks have already cut significantly more than what has been transmitted through the base rate. In that sense, there is room building up for the banks to transmit more. I think it is a matter of time as these costs flow through," Rajan said.
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