Rajan for faster transmission of RBI rate cut

After lowering the interest rate by 50 basis points to boost economy, Reserve Bank Governor Raghuram Rajan on Tuesday said the RBI will work with the government to ensure faster transmission and hoped that banks will pass on the benefits to customers. In a surprise move, the RBI reduced the key interest rate by 50 basis point to 6.75 per cent from 7.25 per cent. “We believe that some (monetary policy transmission) would take place very soon and more will take place over time,” Rajan said.