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