RBI cuts repo rate by 40 bps from 4.4 pct to 4 pct, reverse repo rate reduced to 3.35 pct
The Reserve Bank of India on Friday morning reduced the repo rate by 40 basis points to bring it down from 4.4 per cent to 4 per cent, giving a major relief to borrowers.
The Reserve Bank of India on Friday morning reduced the repo rate by 40 basis points to bring it down from 4.4 per cent to 4 per cent, giving a major relief to borrowers. The move announced by RBI governor Shaktikanta Das during a press conference, will both home and auto loan borrowers.
Das informed that the Central Bank’s Monetary Policy Committee Met earlier that scheduled in the wake of COVID-19 crisis and voted in the ratio of 5:1 in favour of the repo rate cut.
The Reverse repo rate stands reduced to 3.35%.
The RBI governor praised his team and said that the Central Bank has been proactively working to deal with the current situation. RBI maintained accommodative stance, while saying that inflation will remain firm in the first half of 2020 but ease later on.
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This was RBI governor’s time media address since the coronavrius-induced lockdown began on March 25. 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.
A separate Rs 20 lakh crore economic package was also announce by Prime Minister Narendra Modi, the details of which were provided by Finance Minister Nirmala Sitharaman.
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