As bank deposits contracted in the past at high rates have started to mature and banks have significantly reduced their term deposit rates, the transmission of lower policy rates to the credit market has improved with a lag (Chart 7). Chart 7: Deposit and lending rates of public sector banks  What are the challenges of exit from monetary easing? 23.
We have also been reminded that markets move in cycles, and the fallacy of some people who advocated a “decoupling of emerging markets” or that “the business cycle has been conquered” has been proven to have widely missed the point. What is the lesson to be learnt?