Reserve Bank of India Governor Shaktikanta Das on Friday announced repo rate cut by 40 basis points from 4.4 per cent to 4 per cent. Reverse repo rate also stands reduced to 3.35 per cent. Talking about the macroeconomic scenario, Das said the industrial production shrank by close to 17 per cent in March with manufacturing activity down by 21 per cent. "Output of core industries contracted by 6.5 per cent, says Das. He also said the GDP growth in 2020-21 was expected to remain in the negative category with some pick up in second half.Also read: RBI faces herculean task! Borrowing target Rs 22.69 lakh, savings available Rs 14 lakh crore
Follow the live updates of RBI Governor Shaktikanta Das' press conference here:
10.36 AM: "Monetary policy transmission has continued to improve. Combination of fiscal, monetary and administrative actions will create conditions for revival of economy in 2nd half of FY21," says RBI Governor
10.34 AM: RBI Governor's announcements today
- Rs 15,000-cr line of credit extended to EXIM Bank
- Export credit period extended to 15 months from 1 year
- RBI to roll over Rs 15,000-crore refinance facility for SIDBI for 90 days
10.33 AM: The RBI has extended the moratorium on loan repayments by three more months in view of COVID-19, says Das
10.32 AM: Measures announced today can be divided into 4 categories -- to improve functioning of markets, to support exports and imports, to ease financial stress by giving relief on debt servicing and better access to working capital and to ease financial constraints faced by state govts.
10.30 AM: Agriculture and allied activities still strong: RBI
Amidst this encircling gloom, agriculture and allied activities have, however, provided a beacon of hope on the back of an increase of 3.7% in food grain production to a new record.
10.25 AM: India's foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, foreign exchange reserves stand at 487 billion US dollars: Reserve Bank of India (RBI) Governor Shaktikanta Das
10.19 AM: The RBI Governor says headline inflation could remain firm in the first half of FY21. The headline inflation in the second half of 2020 could ease on favourable base effects, says the Governor.
10.18 AM: Six member monetary policy committee voted 5:1 in favour of 40 bps cut in interest rate: RBI Governor
10.17 AM: RBI Governor briefing
- COVID-19 has caused immense blow to private consumption
- Industrial production shrunk by 17% in March
10.16 AM: India seeing collapse of demand; electricity, dip in petroleum product consumption; fall in private consumption, says RBI Governor
10.10 AM: Repo rate cut by 40 bps to 4%; reverse repo rate reduced to 3.35%.
10.05 AM: We must have faith in India's resilience and come out of all odds, says Das
10.00 AM: Special thanks to over 200 staff members working to keep the RBI work functional, says Das
9:55 am: RBI Governor Shaktikanta Das to address media soon
9:45 am: RBI tweets about the press conference
The apex bank said in a tweet, "Watch out for RBI Governor live address at 10:00 am today (May 22, 2020)."