Investment demand has virtually Haulted. MPC which met off-cycle voted in ratio of 5:1 in favour of cutting repo rate. While addressing the conference Governor Shaktikanta Das said that and of cycle meeting of monetary policy committee was conducted for past 3 days.
RBI MPC cuts repo rate by 40 BPS points from 4.4 % to 4%. Reverse repo rate stand reduced to 3.35% from 40bps.
In March RBI head allowed 3 months moratorium on payment of all term loan due between March 1st 2020 and May 31st 2020. As the lockdown has extended, the RBI has also extended Moratorium on term loans till August 31st.
Export credit period get increased to 15 months from one year. Monetary policy transmission has continued to improve coma RBI will extend Rupees 15 crore line of credit to EXIM banks.
Governor says that India is seeing collapse of demand; electricity, dip in petroleum product consumption; fall in private consumption. Governments revenue have been impacted due to Slow Down in economic activity amid covid-19 outbreak.
GDP growth rate expected to remain in -ve category.
Governor Shaktikanta Das may again announce some new measures to ease liquidity pressure in banking system and to boost the economy from covid-19 outbreak.