New Delhi: The Reserve Bank of India (RBI) on Thursday indicated further cuts in interest rates, said that measures taken to save the economy from the covid-19 epidemic will not be removed soon. RBI Governor Shaktikanta Das said in a program that whether rate cuts or other policy steps, the arrows of our quiver are not over yet. He said that the banking system of the country is strong and stable. Even in this era of corona virus epidemic, the banking system of India has retained its capacity.
The Reserve Bank did not change the repo rates in the policy review released on 6 August. The central bank had earlier cut the policy rate by 1.15 percent in the last two meetings. Currently, the repo rate is 4 percent, reverse repo rate is 3.35 percent and MCF rate is 4.25 percent. At the same time, the RBI made a provision to give loans equal to 90 per cent of the value of bank gold to provide relief to the people amid the covid-19 epidemic. Earlier this limit was 75 percent.
The RBI governor said that after the prevention of the epidemic, the economy will have to proceed with caution to get on the path of strength. Regarding the relief measures announced recently by the central bank, Das said, “By no means should one assume that the RBI will withdraw the measures soon.” With clarity, RBI will start making its forecasts on inflation and economic growth.
