Excerpts from RBI Governor’s address to the Media :
- RBI has been very proactive, evolving situation is being monitored very closely.
- The mission is to do whatever it takes to prevent the epidemiological curve from steepening further,
- The macroeconomic and financial landscape has deteriorated precipitously in some areas, while light shines through bravely in some areas.
- As per @IMF, global economy is expected to plunge into its worst recession in 2020, estimating cumulative loss to global GDP as US $ 9 trillion. India is among the handful of countries expected to have a +ve growth rate of 1.9% – the highest among #G20 economies.
- RBI is announcing additional measures:
To maintain adequate liquidity in face of #COVID19
To facilitate and incentivize bank credit flows
To ease financial stress To enable normal functioning of markets
- Special refinancing facilities of Rs. 50,000 crore to be given to All India Financial Institutions such as NABARD, @sidbiofficial and National Housing Bank, to enable them to meet sectoral credit needs.
- Reverse repo rate is being reduced from 4% to 3.75% with immediate effect, in order to encourage banks to deploy surplus funds in investments and loans in productive sectors of the economy.
Source & Pic Credit : PIB