RBI governor Shaktikanta Das has addressed the media for the third time to announce the economic measures this Friday morning. After the announcements of the finance minister’s Rs 20 lakh crore economic package, the RBI governor releases some economic measures. Earlier this month, the RBI governor arranged for a meeting. The meeting was held with private and public sector heads to review the measures announced by the RBI governor in the last two press releases. Further implementations were also discussed to help the country bring out of this economic slowdown. Implementations listed by RBI governor are as follows
Highlights of the press meet:
RBI to cut the REPO rate from 4.4% to 4%.
RBI to cut down the reverse REPO rate to 3.35% from 3.75%.
FOUR KEY MEASURES to boost the economy
STEP 1: Improve the functioning of markets
STEP 2: Measures to support exports
STEP 3: Ease of financial stress due to COVID-19
STEP 4: Ease the financial strain of state governments
RBI has also extended the loan moratorium period till august 31 that makes it a six-month moratorium. This was undertaken to allow relaxations due to the extension of lockdown.
Allocation of Rs 15,000 crore to EXIM banks with a line of credit for 90 days that avail US dollar swap facility.
To help manage importer’s operative cycle, outward remittances have been bought to 6 months from 12 months against normal imports into India.
RBI governor announced Rs 50,000 crore support through financial institutions like SIDBI, Nabard, and NHB.
GDP growth is estimated to be in negative territory in FY 2020-2021 due to the epidemic outbreak.
Inflation may remain firm in the first half and will ease out in the second half.
World trade volume can shrink by 13-32% this year.
Shaktikanta Das expressed his worries on demand and production loss. He added that he was more worried about the merchandise exports that has slumped to the worst level in 30 years. The biggest blow from consumer durables production falling 33 percent has hit the economy severely. But he is happy on the other side that monsoon forecasts reveal that agriculture can see a positive ray of hope.
He also added that RBI is vigilant, ready to perform whatever actions to tackle the unknown future and come out of all odds.