RBI cuts repo rate, extends loan moratorium, projects negative GDP growth

RBI Governor Shaktikanta Das extended the moratorium period by another three months from June 1 to August 31 due to lockdown extension

FM Nirmala Sitharaman postpones meet with PSB chiefs to later this week

The agenda also included taking stock of interest rate transmission to borrowers by banks and progress on moratorium on loan repayments

The governor appreciated the efforts of banks in ensuring normal to near normal operations during the lockdown period

Reserve Bank will remain vigilant and will not hesitate to use any instrument to mitigate the impact of Covid-19

Key rate cut by an unprecedented 75 pts

The central bank also reduced the cash reserve ratio of all banks by 100 basis points to 3 per cent with effect from March 28 for 1 year

Globaly economy growth expected to slow down due to Coronavirus

His comments come against the backdrop of concerns over growth of the economy, which has registered a spike in inflation

Next meeting of the MPC scheduled during March 31, April 1 and 3, 2020.

The governor said the continuity in policy from last pause should not be read as a pointer to future actions.