RBI extends loan relief, announces cut in Repo rate
New Delhi: Following a three-day off-cycle meeting, the Monetary Policy Committee (MPC) Friday slashed the repo rate by another 40 basis points from 4.4 per cent to 4 per cent.
Reserve Bank of India (RBI) Governor Shaktikanta Das, addressing the press, said the unanimous decision was taken to revive growth and mitigate the impact of the coronavirus pandemic. The reverse repo rate was reduced simultaneously to 3.35 per cent.
Meanwhile, Das said the GDP growth would remain in negative territory, with some pick up in the second half. “Simultaneous fiscal, monetary and administration measures will create conditions for a gradual revival of activity in the second half of 2020-2021,” he said.
Among the policy decisions taken, the moratorium on term loans available till May 31 was extended by another three months till August 2020.
Das was addressing his third press conference in two months, since India went into lockdown to contain the spread of Covid-19. His briefing came days after Union Finance Minister Nirmala Sitharaman held a series of five press conferences to announce details of India’s Rs 20 lakh crore economic package to cushion the impact of the coronavirus pandemic.
RBI Governor Shaktikanta Das announces four policy decisions taken by the MPC to mitigate the impact of Covid-19. These include: measures to improve functioning of markets; investments by FPIs by voluntary retention route; support to exports and imports; extension of measures to ease financial stress.