RBI Governor Live : MPC Cuts Repo Rate by 40 Basis Points to 4%, Your Loan – EMI will be Cheaper

New Delhi : In his third press conference in two months, Reserve Bank of India (RBI) Governor Shaktikanta Das is addressing the media today i.e. on Friday. This is his third press conference in two months. His briefing comes days 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. Now Reserve Bank of India (RBI) Governor Shaktikanta Das has announced the repo rate reduction.

MPC Cuts Repo Rate by 40 Basis Points to 4%: Shaktikanta Das
RBI Governor Shaktikanta Das begins his address to the press. He says Covid-19 has crippled the global economy and has brought forward the need for an off-cycle meeting of the Monetary Policy Committee (MPC). Over the last three days (May 20-22), the MPC has voted unanimously in a reduction of policy repo rate to revive growth and mitigate impact of Covid-19. The repo rate has been cut by 40 basis points from 4.4% to 4%, says Das.

Marathe Gave These Suggestions
Satish Kashinath Marathe had said, ‘The relief package is good and progressive thinking, but it has failed in terms of including banks as advance warriors in reviving the economy. Three months moratorium is not enough. NPA, softening in provisioning etc. should have been part of the relief package so that India can be taken on the path of progress once again.’

In his last two briefings – March 27 and April 17 – Das announced a string of measures to ease liquidity in the banking and financial sectors. This included steps to expand liquidity in the market, reinforce monetary transmission, ease financial stress by relaxing repaying pressures and improve the functioning of markets in view of high volatility.