Reserve Bank did this to speed up the economy

May 22 2020 05:25 PM
Reserve Bank did this to speed up the economy

Between the lockdown and the Corona crisis, the Reserve Bank of India has again cut key interest rates. RBI has reduced the policy repo rate by 0.40 percent. With this deduction, now the repo rate has come down to 4 percent. Reserve Bank Governor Shaktikanta Das gave this information at a press conference on Friday. Das said that the meeting of the Monetary Review Committee was to be held from June 3 to 5, but before that, the committee had held the meeting and took important decisions. He said that five of the six MPC members have agreed to the decision to cut the repo rate.

In his statement, RBI Governor Das said that the MPC has decided to reduce the reverse repo rate along with the repo rate. The RBI has reduced the reverse repo rate from 3.75 percent to 3.35 percent. Earlier on March 27, the RBI had cut the repo rate by 0.75 percent.

Apart from this, Das said that there has been a spurt in customers getting the benefit of rate cuts. Now banks can reduce their interest rates on the loan by cutting the repo rate. Please tell here that the repo rate is the rate at which the country's central bank gives loans to other banks.

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