"In view of the extension of the lockdown&continuing disruption on account of #COVID19, these measures are being further extended by another 3 months from June 1 to Aug 31", RBI governor said.
The governor may also comment on the recent economic package announced by the government to counter the COVID-19 impact in the economy.
Headline inflation could stay firm in the first half of 2020 but soften thereafter. The RBI has also announced a three-month moratorium for all term loan repayments between March 1 and May 31.More news: Nick Cordero’s Wife Amanda Kloots Says Recovery Is Going ‘A Little Downhill’
The central bank refrained from giving a projection for GDP growth for the current financial year, as it stopped at saying GDP growth expected in the "negative territory" with some pick-up in growth impulses from the second half of 2020-21 onwards.
The Group Exposure Limit of banks is being increased from 25% to 30% of eligible capital base for enabling the corporates to meet their funding requirements from banks.
RBI governor Shaktikanta Das says a facility of Rs 15,000 crore line of credit for 90 days for United States dollar swap facility will be provided to EXIM Bank.More news: United Kingdom track and trace system in place from June
In the light of the COVID-19 pandemic and the consequent stress on these state government finances, Shaktikanta Das said that RBI has chose to relax the rules governing withdrawal from the CSF, while at the same time ensuring that depletion of the fund balance is done prudently. This will have a rollover facility to upto one year. "That's why they are going for the rate cut, [while my] guess [is] inflation might be getting into an uncomfortable territory, maybe at the end of the second quarter or so", he said, adding that he is happy the bank is taking steps to address short-term concerns, which the government appears reluctant to handle with fiscal policy. "The continued proactive measures taken by the RBI will help address these issues and revive the economy in the second-half of the year". Here, he said that price of vegetables, oilseeds, and milk emerged as pressure points. "The total period of applicability will now be six months", RBI governor Shaktikanta Das said, on Friday.
"High-frequency indicators point to a collapse in demand. beginning in March 2020, across both urban and rural segments", Das said. This, he said, has taken a toll on fiscal revenues.
Volume of world trade can shrink by 13-32 percent this year, says RBI governor Shaktikanta Das.More news: Hydroxychloroquine: Why is the United Kingdom bulk-buying Trump's favourite drug?
The Reserve Bank of India on Friday cut its benchmark interest rate 40 basis points to 4%, in a surprise move, as the novel coronavirus pandemic jolts the country's economy. The rupee weakened and stocks reversed gains to halt a three-day rally ahead of a long weekend.