In view of the danger of damage to the economy due to coronavirus in the country, today the central bank RBI made a big announcement to cut interest rates by 75 points. Repo rate has now come down to 4.4 percent. At the same time, the reverse repo rate has been reduced by 90 points.
Earlier on Thursday, the government had announced a relief package of Rs 1.70 lakh crore for the poor in view of the danger of corona virus. After which the stock market has remained bullish. In the stock market, RBI was expected to cut interest rates.
Repo rate reduced by 75 basis points to 4.4.%. Reverse repo-rate reduced by 90 basis points to 4%: RBI Governor Shaktikanta Das pic.twitter.com/eBb0WPAG21
— ANI (@ANI) March 27, 2020
RBI Governor Shaktikanta Das said that the Monetary Policy Committee held a review meeting ahead of time in view of the threat to the economy due to the corona virus.
In the meeting, 4 members were in favor of big cuts. After which this decision was taken. The review meeting lasted from 24 to 27 March.
Let we tell you, in the last review meeting, it was decided not to make any changes in the rates. Even before this, the RBI has cut rates 5 times.
Significantly, coronavirus has spread all over the world, due to which there is pressure on the global economy. In view of this, countries all over the world are making every effort to bring their economy back on track. The global supply chain has been disrupted due to Carona, which is also affecting domestic companies. It is impacting many major sectors and their fourth quarter results are expected to be affected. There may be a significant decline in the revenue of companies. In view of this, the government and RBI are also taking many measures on their behalf.
