Reserve Bank of India Governor, Shaktikanta Das addressing a press conference announced that the Monetary Policy Committee (MPC) met ahead of time and voted for an emergency rate cut of 75 basis point, effectively taking the repo rate to 4.4% from the earlier 5.15%. Das, further added that the MPC refrained from projecting inflation and growth this time as the situation was too volatile. To help India tide over the Coronavirus pandemic, RBI announced comprehensive package, including, measures to expand liquidity, steps to reinforce monetary transmission, efforts to ease financial stress by relaxing repayment, and endeavour to improve the functioning of the market. “The world is fighting an invisible assassin,” Das said while he announced a slew of measures, including measures to infuse liquidity and a 3-month moratorium on term loans. The moratorium, Das said will not result in asset classification downgrade. The MPC voted 4-2 for a rate cut. Earlier, yesterday the Finance Minister announced a Rs 1.7 lakh crore relief package for the poor who are struggling to earn during the current 21-day lockdown period.
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