Mumbai: Prime Minister Narendra Modi on Friday praised the decisions taken by the Reserve Bank of India to counter the economic downturn triggered by the coronavirus lockdown and said it would improve liquidity, reduce the cost of funds and provide for the middle class and businesses.
Taking a dig at Twitter, Modi said that the RBI has taken a big step to protect the country’s economy from the effects of coronavirus.
“Today, RBI has taken giant steps to safeguard our economy from the impact of the coronavirus. The announcements will improve liquidity, reduce the cost of funds, help middle class and businesses,” Modi tweeted.
Today @RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce cost of funds, help middle class and businesses. https://t.co/pgYOUBQtNl
— Narendra Modi (@narendramodi) March 27, 2020
Earlier today, the RBI reduced the key repo rate from 75 basis points to 4.4 per cent and the reverse repo rate was reduced from 90 basis points to 4 per cent, to make it unattractive for banks to passively deposit funds with the central bank and instead lend it to the productive sectors.
This comes as the country is under a 21-day lockdown to prevent the spread of coronavirus, which according to the Ministry of Health and Family Welfare has claimed 17 lives and infected 724 people as on Friday.