{"id":8455,"date":"2020-05-22T09:28:59","date_gmt":"2020-05-22T09:28:59","guid":{"rendered":"https:\/\/sunkrish.com\/?p=8455"},"modified":"2020-05-23T09:30:38","modified_gmt":"2020-05-23T09:30:38","slug":"rbi-governor-press-conference-highlights-repo-rate-cut-by-40-bps-to-4","status":"publish","type":"post","link":"https:\/\/sunkrish.com\/index.php\/2020\/05\/22\/rbi-governor-press-conference-highlights-repo-rate-cut-by-40-bps-to-4\/","title":{"rendered":"RBI Governor Press Conference Highlights: Repo rate cut by 40 bps to 4%"},"content":{"rendered":"
\"\"<\/a>
The Reserve Bank of India on Friday announced a surprise 40 basis points repo rate cut in an off-cycle policy review. RBI Governor Shaktikanta Das announced the decision of the Monetary Policy Committee at a press conference. He also said that the GDP growth for FY21 is expected to be in negative territory<\/strong><\/span><\/figcaption><\/figure>\n

The RBI Governor Shaktikanta Das announced a slew of measures aimed at further easing the liquidity conditions and providing relief to borrowers just a few days after the government concluded unveiling its five tranches of Rs 20 lakh crore worth of stimulus.<\/p>\n

Staying true to what he had said earlier, RBI Governor came out for the third time with a set of measures to alleviate distress in the economy. The interventions included announcement on policy rates front with the Monetary Policy Committee holding an out of- cycle review meeting and extension of previously announced relief measures for both industrial establishments and individual borrowers.<\/p>\n

The RBI was expected to follow up with monetary-side interventions after the government announced fiscal measures to cushion the economy from the Covid impact.<\/p>\n

Key Takeaways:<\/strong><\/p>\n

Liquidity support: <\/strong>The RBI Governor Shaktikanta Das announced a 40 basis points repo rate cut. The MPC voted, with five of its six members in favour, for a reduction of repo rate by 40 basis points to 4 per cent from 4.4 per cent. Consequently, the reverse repo rate now stands at 3.35 per cent.<\/p>\n

Moratorium extended: <\/strong>A further three-month extension up to August 31, 2020 on the following:<\/p>\n

    \n
  1. Moratorium on term loan installments<\/li>\n
  2. Deferment of interest on working capital<\/li>\n
  3. Easing of working capital financing requirements by reducing margins<\/li>\n
  4. Exemption from being considered as defaulter in supervisory reporting and reporting to credit information companies<\/li>\n
  5. Extension of resolution for stressed assets, asset classification standstill by excluding moratorium period of three months.<\/li>\n<\/ol>\n

    Growth Outlook: <\/strong>On economic growth in the current fiscal, the RBI projected negative growth with a pick-up in growth impulses in second half. However, these depend on the trajectory of the pandemic.<\/p>\n

    Inflation Outlook: <\/strong>Headline inflation may fall below the RBI’s medium term target of 4% in third or fourth quarter of the current fiscal.<\/p>\n

    Demand & Supply: <\/strong>The governor said that the private consumption, which comprises 60 per cent of the GDP, has taken the biggest hit. Both the demand compression and supply disruption has taken a toll on the economy, the governor observed.<\/p>\n

    Foreign trade: <\/strong>Line of credit of Rs 15,000 crore for 90-days with roll over of up to one year so as to enable it to avail US dollar swap facility.<\/p>\n

    SIDBI: <\/strong>The special refinancing facility of Rs 15,000 cr to SIDBI at repo rate for 90 days for lending & refinance operations has been further rolled over for another 90 days at the end of initial 90 days period.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The RBI Governor Shaktikanta Das announced a slew of measures aimed at further easing the liquidity conditions and providing relief to borrowers just a few days after the government concluded unveiling its five tranches of Rs 20 lakh crore worth … Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":3386,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,4,493],"tags":[311,1013,314,305,393,367,609],"class_list":["post-8455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-business-advisory-services","category-financial-corporate-services","category-economy-business-updates-corporate-affairs","tag-corporate","tag-covid-19","tag-debt","tag-economy","tag-non-performing-assets-npa","tag-reserve-bank-of-india-rbi","tag-small-industries-development-bank-of-india-sidbi"],"_links":{"self":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/8455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/comments?post=8455"}],"version-history":[{"count":2,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/8455\/revisions"}],"predecessor-version":[{"id":8457,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/8455\/revisions\/8457"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media\/3386"}],"wp:attachment":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media?parent=8455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/categories?post=8455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/tags?post=8455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}