RBI Governor Shaktikanta Das lowered Repo rates to 3.35%, from 4.4% to 4%. Repo rates were reduced to 3.35%.
Governor Shaktikanta Das of Reserve Bank of India ( RBI) today declared the decision by the Central Bank to cut repo rate from 4.4 to 4% by 40 basis points. The RBI has agreed to reduce the reverse repo rate to 3,35 percent, according to Shaktikanta Das.
Shaktikanta Das said that, after a 5:1 vote between the 6-member Monetary Policy Committee, the decision to reduce the repo rate by 40 trading days was taken, adding that the RBI had kept its position accommodating and would continue to support the economy as necessary.
Shaktikanta Das said the world economy would fall into deflation owing to the devastation of the Covid 19 pandemic, in a press conference.
Nevertheless, he said that India had a little ray of hope from strong performance in the rabbi season, and that India's meteorological department expected a regular moonsoon.
"India's domestic demand was the worst hit owing to an outbreak of Covid-19 and investment demand ceased," said Shaktikanta Das.
He introduced that government revenues were severely affected by the Covid-19 crisis. The Governor of the RBI has reported that India's GDP growth would be adversely impacted by 2020-21.
"The market is decreasing in India. The usage of energy and oil products is rising and the private output is falling," Shaktikanta Das said.