Governor of Reserve Bank Of India Shaktikanta Das in his press conference announced the furtherreduction of repo rate by another 40 basis points from 4.4 per cent to 4 per cent thus simultaneously reducing the reverse repo rate to 3.35 per cent. The decision was taken in view to combat the coronavirus effect said RBI governor.
This was the third conference in two months, since the lockdown period has started due to Covid-19. This announcement was came after after Union Finance Minister Nirmala Sitharaman held a series of five press conferences to announce details of India’s Rs 20 lakh crore economic package to cushion the impact of the coronavirus pandemic.
- Union Cabinet Approves “Scheme for formalisation of Micro Food Processing Enterprises”
- Remittances (Money Transfer Service Scheme (MTSS) and Rupee Drawing Arrangement (RDA)
Highlights of RBI Governor Press Conference
- Das announced the extension of Moratorium on term loans by another three months till August
- RBI governor said, ” India’s foreign exchange reserves have increased by 9.2 billion during 2020-21 from April 1 onwards”
- It is expected that economy might pick up in second half but GDP growth will remain in negative territory.
- As per the statistics quoted by Das, Industrial production shrank by 17 per cent in March due to India’s lockdown, while manufacturing activity fell by 21 per cent. Output of core industries contracted by 6.5 pe cent as per the records.
- Consumer durable production falls at 33% in March 2020 thus slumping the private consumption.
- Monetary Policy Committee is expecting the inflation to fall below 4% in Q3 & Q4 of 2020.
- EXIM Bank will be given 15000 crore line of credit facility for 90 days for US Dollar Swap facility.
- Another 90 day term loan facilities will be offered to SIDBI in order to provide greater flexibility to it.
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