RBI reduces repo rate by 40 basis points from 4.4% to 4% and reverse repo rate is now 3.35%.
MPC (Monetary Policy Committee) inflation outlook highly uncertain due to the pandemic.
GDP growth estimated to remain in negative territory.
Private consumption has seen biggest blow due to COVID-19 outbreak, investment demand has halted.
Industrial production shrank by close to 17% in March with manufacturing activity down by 21%.
Inflation may remain firm in first half of year; ease in second half, falling below 4% in Q3/Q4 of FY21.
Moratorium on term loans are extended for a further period of 3 months i.e. till 31st Aug, 2020.
Measures announced can be delineated in 4 categories- Measures to improve markets, measures for exports/imports, measures to ease financial stress, measures to reduce state government's financial stress.
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