NEW DELHI : In his third such address since the coronavirus-induced lockdown began on March 25, Reserve Bank of India (RBI) Governor Shaktikanta Das is now holding a press conference. After the lockdown began, Das had slashed the benchmark interest rate (repo rate) by a massive 75 basis points and also announced a three-month moratorium to be given by banks to provide relief to borrowers whose income has been hit due to the lockdown.
Finance Minister Nirmala Sitharaman, who recently announced the ₹20 lakh crore economic package in five tranches, will also hold a review meeting with CEOs of public sector banks (PSBs) today to discuss various issues, including loan disbursement, as part of efforts to revive the economy reeling under the COVID-19 impact.
-Impact of coronavirus turning out to be more than expected
-GDP growth expected to remain in negative category: Shaktikanta Das
-RBI maintains accommodative stance.
-Inflation to remain firm in the first half of 2020 but ease later on.
-A ray of hope comes from the forecast of normal monsoons: Das
-MPC, which met off-cycle, voted in the ratio of 5:1 in favour of the repo rate cut
-RBI MPC cuts repo rate cut by 40 basis points from 4.4 % to 4%. Reverse repo rate stands reduced to 3.35%.
-Repo rate cut by 40 basis points.
-RBI press conference begins.
-Stock markets are flat ahead of the RBI press conference.
-The RBI cut interest rates by a sharper-than-expected 75 basis points in late March. Markets and economists now expecting at least another 75-100 basis points cuts in the remainder of this fiscal year.
-In today’s press conference RBI Governor may again announce new measures to ease liquidity pressure in the banking system and to boost the economy from the coronavirus shock.