The Reserve Bank of India's (RBI) on Friday cut itsrepo rate by 40 basis point to 4% and adjusted the reverse repo rate to 3.35%from 3.75%, said governor Shaktikanta Das.
ShaktikantaDas made the announcements during a press conference through video.
TheRBI on March 27 slashed the benchmark interest rate by a massive 75 basispoints and also announced a three-month moratorium to be given by banks toprovide relief to borrowers whose income has been hit due to the lockdown.
RBIhas announced several steps to ease the pressure faced by borrowers, lendersand other entities including mutual funds and has promised to take moreinitiatives to deal with the developing situation.
RBI has injected fundsamounting to 3.2% of GDP into the economy since the February 2020 monetarypolicy meeting to tackle the liquidity situation.
