RBI Governor LIVE: Shaktikanta Das cuts reverse repo rate 25 bps, repo unchanged; liquidity, bank credit eased
RBI Governor Shaktikanta Das Live Press Conference Updates: Reserve Bank of India Governor Shaktikanta Das today cut reverse repo rate by 25 basis points to 3.75%, while keeping repo rate unchanged, in emergency measures to provide more relief to an economy fighting the fallout of coronavirus.
RBI Governor Shaktikanta Das Live Press Conference Updates: Reserve Bank of India Governor Shaktikanta Das today cut reverse repo rate by 25 basis points to 3.75%, while keeping repo rate unchanged, in emergency measures to provide more relief to an economy fighting the fallout of coronavirus. He has unveiled measures to ease liquidity and bank credit; and to support the economy and enable normal functioning of markets, as part of the economic relief to mitigate the fallout of coronavirus lockdown. Earlier, last month, the RBI advanced its Monetary Policy Committee meet and cut the repo rate by a massive 75 basis points, among other emergency measures, to add to the government’s economic relief to mitigate the fallout of the coronavirus and the lockdown. Before that, Finance Minister Nirmala Sitharaman had announced a mega economic relief package worth about Rs 1.7 lakh crore, which included insurance for health workers; higher wages reaching up to 5 crore families under MNREGA employment scheme; free wheat, rice and pulses distribution for three months to 80 crore people; cash transfers for three months to poor women. Even before that, RBI had announced mega liquidity measures, pumping in money into the system via LTROs. However, there have been calls on the RBI to further ease requirements for the non-banking finance companies, which still need to repay their dues to banks on time. In further development, Finance Minister Nirmala Sitharaman met Prime Minister Narendra Modi yesterday amid the buzz of a second economic relief package, which she is expected to unveil soon.