Corona Impact: RBI reduced Repo rate by 75 basis points to 4.4.%
New Delhi: In the midst of lock down, there are constant efforts by the government to boost the country’s economy. Under this, the Reserve Bank has cut the repo rate by 75 basis points as expected. After this reduction, the repo rate has come down from 5.15 to 4.45 per cent. This reduction in the repo rate is the largest in RBI history.
RBI governor Shaktikant Das said that Monetary Policy Committee noted that global economic activity has come to a near stand-still as COVID19 related lock downs & social distancing in affected countries. Expectations of a shallow recovery in 2020 from 2019’s decade low in global growth have been dashed.
Governor’s address to media https://t.co/vsfV13L0UK
— ReserveBankOfIndia (@RBI) March 27, 2020
RBI Governor stated that COVID19 stocks the global economy and the outlook is highly uncertain & negative. Several nations are battling its exponential contagion. Countries are shutting down to prevent being sucked into a kind of black hole.
Shaktikanta Das added that 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.
Govt announced the help package of 1.7 lakh crore:
The government on Thursday announced a Rs 1.7 lakh crore stimulus that included free foodgrain and cooking gas to poor for three months, and cash doles to women and poor senior citizens as it looked to ease the economic impact of the nationwide lockdown.
Govt fixed the price of Masks:
The Centre has capped the maximum retail price of 3 ply face masks made of meltblown non-woven fabric at Rs 16 per piece till June 30 after clearing confusion with the manufacturers.