RBI's commitment to keep sufficient liquidity will facilitate rate cut transmission: Fitch

Fitch Ratings predicts that the Reserve Bank of India's (RBI) liquidity measures will help transmit a 100 bps rate cut in 2025. The RBI has injected significant funds into the banking system. This action has eased funding conditions. Surplus liquidity and falling deposit costs are expected. The Cash Reserve Ratio (CRR) cut will further boost liquidity.