Prime Minister Narendra Modi hailed RBI after rate cut. The RBI Governor’s address during which he announced a 75 basis points cut in repo rate to 4.4 per cent to help arrest the economic slowdown in the wake of the coronavirus (Covid-19) outbreak.
Taking it to Twitter, PM wrote, “Today RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce cost of funds, help middle class and businesses.”
Today @RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce cost of funds, help middle class and businesses. https://t.co/pgYOUBQtNl
— Narendra Modi (@narendramodi) March 27, 2020
Reserve Bank of India Governor Shaktikanta Das announced a reduction in the repo and reverse repo rate on Friday.
“The repo rate has been reduced by 75 basis points to 4.4 per cent. The reserve repo rate has been reduced by 90 basis points to 4 per cent,” Das said addressing the media.
The decision for “a sizeable reduction” in the policy repo rate, according to the RBI Governor was taken to “revive growth and mitigate the impact of COVID-19 and ensure financial stability.”
This decision comes a day after Union Finance Minister Nirmala Sitharaman announced a special Rs 1.7 crore relief package to help the poor and migrant workers amid a 21-day nationwide lockdown to mitigate the impact of coronavirus pandemic.