The Reserve Bank of India today announced several monetary easing measures, including extending the moratorium on loan repayments by another three months, and an emergency cut in the policy repo rate. Governor Shaktikanta Das today said that the Monetary Policy Committee, after an unscheduled meeting, cut the policy repo rate by 40 basis points to 4.0%. The RBI Monetary Policy Committee voted unanimously for a reduction in the policy repo rate, while voted 5:1 in favor of the quantum of the cut,
A fall in reverse repo rate would serve as a disincentive to banks In view of the large issues at the primary for the rest of the year from both central and state governments, the likely gains at the long end may come with elevated risks. The fall in the reverse repo rate would serve as a disincentive to banks who hold huge sums of liquidity to look at alternatives including gilts - Joseph Thomas, Head of Research - Emkay Wealth Management
Moratorium on term loans extended by another three months till August. RBI Governor Shaktikanta Das announces four policy decisions taken by the MPC to mitigate the impact of Covid-19. These include: measures to improve the functioning of markets; investments by FPIs by voluntary retention route; support to exports and imports; extension of measures to ease financial stress
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