Mumbai: Reserve Bank Of India Governor Shaktikanta Das on Friday addressed the media and said that repo and reverse repo rate has been reduced.
“The repo rate has been reduced by 75 basis points to 4.4 per cent. The reserve repo rate has been reduced by 90 basis points to 4 per cent,” said Das.
The decision comes a day after Union Finance Minister Nirmala Sitharaman announced a special relief package of Rs 1.7 crore.
According to RBI Governor, the “sizeable reduction” the policy repo rate will help to “revive growth and mitigate the impact of COVID-19 and ensure financial security.”
The intensity, spread and duration of the Coronavirus will determine the state of the global economy. The government has taken good measures and we must ensure we do all we can to win this battle against the Coronavirus, the RBI Governor said.
It has been decided to reduce the Cash Reserve Ratio (CRR) of all banks by 100 basis points to 3% of Net Demand and Time Liabilities with effect from the fortnight beginning March 28 for a period of 1 year.
MPC (Monetary Policy Committee) noted that global economic activity has come to a near stand-still as #COVID19 related lockdowns & social distancing in affected countries. Expectations of a shallow recovery in 2020 from 2019’s decade low in global growth have been dashed, stated RBI Governor.
