New Delhi (NVI): To revive growth and mitigate the impact coronavirus pandemic on the economy, the Reserve Bank of India today slashed repo rate by 40 basis points from 4.4 per cent to 4 per cent, a move that is expected to make loans and EMI’s cheaper.
In a video conference, RBI Governor Shaktikanta Das said reverse repo rate stands reduced to 3.5 per cent. He said that the Central Bank is trying to be proactive in responding to the current situation.
RBI Governor’s address https://t.co/lgJvUP91iE
— ReserveBankOfIndia (@RBI) May 22, 2020
Among other decisions taken, the moratorium on term loans available till May 31 was extended by another three months till August 2020. The decisions were taken by RBI’s Monetary Policy Committee (MPC).
This is was the RBI Governor’s third press conference in two months, since the country went into lockdown in late March to contain the spread of Covid-19.
The briefing comes days after Finance Minister Nirmala Sitharaman announced five tranches of the Rs 20 lakh crore economic stimulus package in a series of press conferences.
In his address to the nation on May 12, Prime Minister Narendra Modi had announced the ‘Atma Nirbhar Bharat Package’ to counter the fallout of the coronavirus pandemic and make India self-reliant.