RBI Reduces Reverse Repo Rate By 25 Basis Points From 4 pc To 3.75 pc
Mumbai: In a recent development, the Reserve Bank of India (RBI) today reduced the reverse repo rate by 25 basis points to 3.75 percent from four percent to inject liquidity into the financial markets.
However, the repo rate remains unchanged.
It falls between the COVID-19 epidemic and the subsequent nationwide bandh.
RBI Governor Shaktikanta Das said that liquidity injection in GDP has been 3.2 percent from 6 February to 27 March.
Das said, “RBI is taking proactive steps and closely monitoring the situation. The contraction in exports at 34.6 percent has been much worse than the 2008-09 global financial crisis,”
He said that India expects a “sharp turnaround” with an increase of 7.4 percent in 2020-21.
“For 2020-21, the International Monetary Fund projects decent recoveries, which are close to 9 percentage points to global GDP. After a sharp turnaround to India and its pre-COVID, pre-recession trajectory It is expected to grow at the rate of 7.4 percent. 2020-21, “the RBI governor said.
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