The Reserve Bank of India (RBI) on Friday decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate has been reduced to 3.35 per cent. It has also extended the moratorium on loan repayments by three more months.

Governor Shaktikanta Das said in a press briefing that the Monetary Policy Committee (MPC) unanimously voted to cut the repo rate keeping in mind the nation-wide lockdown.

"RBI's Monetary Policy Committee met again from May 20-22. MPC voted to 5:1 majority to reduce the policy repo rate by 40 basis points from 4.4 to 4 per cent," RBI Governor Shaktikanta Das said on Friday, adding that the GDP growth in India in 2020-21 is estimated to remain in the negative territory.

"India is seeing a collapse of demand. Private consumption has seen the biggest blow due to the Covid-19 outbreak, investment demand has halted. The government revenues have been impacted severely due to slowdown in economic activity," said the governor.

In a big relief to the corporate sector, the Reserve Bank of India allowed a three-month extension of the moratorium on payment of instalment concerning all term loans outstanding on March 1, 2020.

The moratorium, as announced by RBI on March 27, was ending on May 31. This has been extended till August 31 now.

Here are the top 5 announcements by RBI Governor Shaktikanta Das

<ul>
	<li>Repo rate cut by 40 basis points&nbsp;</li>
	<li>Loan moratorium extended for 3 months.&nbsp;</li>
	<li>Headline inflation could stay firm in the first half of 2020 but soften thereafter. If inflation trajectory evolves as expected, space will open up for more rate cuts.&nbsp;</li>
	<li>India GDP growth in 2020-21 is estimated to remain in negative territory.&nbsp;</li>
	<li>Regulatory measures to support exports, imports, states. 
	 
	(With inputs from agencies)</li>
</ul>

The Reserve Bank of India (RBI) on Friday decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate has been reduced to 3.

The Reserve Bank of India (RBI) on Friday decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate has been reduced to 3.35 per cent. It has also extended the moratorium on loan repayments by three more months. Governor Shaktikanta Das said in a press briefing that the Monetary Policy Committee (MPC) unanimously voted to cut the repo rate keeping in mind the nation-wide lockdown. "RBI's Monetary Policy Committee met again from May 20-22. MPC voted to 5:1 majority to reduce the policy repo rate by 40 basis points from 4.4 to 4 per cent," RBI Governor Shaktikanta Das said on Friday, adding that the GDP growth in India in 2020-21 is estimated to remain in the negative territory. "India is seeing a collapse of demand. Private consumption has seen the biggest blow due to the Covid-19 outbreak, investment demand has halted. The government revenues have been impacted severely due to slowdown in economic activity," said the governor. In a big relief to the corporate sector, the Reserve Bank of India allowed a three-month extension of the moratorium on payment of instalment concerning all term loans outstanding on March 1, 2020. The moratorium, as announced by RBI on March 27, was ending on May 31. This has been extended till August 31 now. Here are the top 5 announcements by RBI Governor Shaktikanta Das Repo rate cut by 40 basis points Loan moratorium extended for 3 months. Headline inflation could stay firm in the first half of 2020 but soften thereafter. If inflation trajectory evolves as expected, space will open up for more rate cuts. India GDP growth in 2020-21 is estimated to remain in negative territory. Regulatory measures to support exports, imports, states. (With inputs from agencies)

RBI announces emergency 40 basis point rate cut, 3-month loan moratorium extension

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