RBI Governor Shaktikanta Das on Friday announced reduction in repo rate by 40 basis points from 4.4 per cent to 4 per cent while reverse repo rate stands reduced to 3.35 per cent. Addressing a presser amid lockdown due to COVID-19 pandemic situation, Shaktikanta Das said that there is recession like situation in the world due to pandemic that has impacted businesses worldwide.
Apart from repo rate, other key announcements by Shaktikanta Das were on extending the moratorium period for three more months. He said RBI will be vigilant in battle readiness to address dynamics of unknown future and will preserve financial stability.
Speaking on industrial production output, Das said, “it has shrank by close to 17% in March with manufacturing activity down by 21%. Output of core industries contracted by 6.5%.” More to follow.