Repo rate reduced from 4.4% to 4%, reverse repo rate reduced to three .35%: RBI Governor Shaktikanta Das
Reserve Bank of India (RBI) Governor Shaktikanta Das today announced that the financial institution has decided to scale back the repo rate by 40 basis points from 4.4 per cent to 4 per cent. Shaktikanta Das said, the RBI has also decided to scale back the reverse repo rate to three .35 per cent.
Shaktikanta Das said the choice to chop the repo rate by 40 basis points was taken after a 5:1 vote among the six-member monetary policy committee, adding that the RBI has maintained an accommodative stance and it might keep supporting the economy till required.
Addressing a news conference , Shaktikanta Das said the worldwide economy is about to fall under recession due to the disruption caused by the Covid-19 pandemic. He said however alittle ray of hope for India is from the great yield within the Rabi season and a traditional monsoon predicted by the India Meteorological Department.
"Private consumption in India has seen biggest blow thanks to Covid-19 outbreak and therefore the investment demand has halted," Shaktikanta Das said.
He added that thanks to the Covid-19 crisis, government revenues are impacted severely. The RBI Governor also said that India's GDP growth in 2020-21 is about to be within the negative.
"India is seeing a collapse of demand. there's a dip in electricity and petroleum product consumption, along side fall privately consumption," Shaktikanta Das said.