Mumbai: Policy rate cut by 75 basis points to 4.40%, reverse repo cut by 90 bp to 4%. Monetary policy committee voted 4:2 majority to cut repo rate by 75 basis points to 4.4 pc says RBI Governor. The MPC voted for a sizable reduction in the policy repo rate and for maintaining the accommodative stance of the monetary policy as long as necessary to revive growth.
Target long-term repo operation (LTRO). Large sell-offs in markets have intensified pressure. RBI will conduct LTRO of up to 3-yr tenor of upto Rs 1 lk cr at floating rate linked to policy repo rate says RBI Governor.
The RBI is in mission mode, monitoring evolving financial conditions and calibrating its operations to provide additional liquidity support or other measures as needed says RBI Governor.
Global economic activity has come to a near standstill; expectations of shallow recovery in 2020 dashed; outlook heavily contingent on intensity, spread and duration of #COVID2019. Probability that large parts of world will slip into recession says RBI Governor.
3.74 lakh crore rupees of additional liquidity injected into the system says #RBI Governor. “Cash reserve ratio to be increased by 100 basis points to 3 per cent for the next one year. Minimum required cash reserve reduced to 80 per cent for the next one year,” he adds.
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, RBI Governor. India has locked down economic activity and financial markets are under severe stress. Finance is the lifeline of the economy, keeping it following is the paramount objective of the Reserve Bank of India at this point of time: Shaktikanta Das, RBI Governor.
All commercial banks permitted to allow a 3-month moratorium on repayment of term loan EMIs: Reserve Bank Governor.