Lending and deposit rate moderate sequentially

Despite ongoing transmission of a 250 basis point repo rate increase since May 2022, some banks have reduced lending and deposit rates sequentially, as per central bank data. The weighted average lending rate for fresh rupee loans fell to 9.32% in June from 9.45% in May, while the weighted average domestic term deposit rate for fresh rupee deposits was 6.46% in June compared to 6.47% in May.