Coronavirus fight-RBI reduces repo rate by 75 basis points to 4.4 per cent.EMIs put on hold

The RBI governor stressed upon the need to keep the credit flowing to the stressed areas of the economy.Das announced a sizeable reduction in the policy repo rate and maintaining accommodative stance as long as necessary, while ensuring inflation remains within target.The MPC decided by 4-2 majority to reduce repo rate by 75 basis points to 4.4 per cent.

The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.

Das predicted a big recession coming for all the world, and said India won't be immune. It all depends how India responds to the situation, Das said.

Global slowdown could make things difficult for India too, despite some help from falling crude prices, he said. Food prices may soften even further on record crop, he added. Aggregate demand may weaken and ease core inflation further, he said.

Banking system is safe and sound, the governor insisted, adding that it would be fallacious to link share prices to banks' fate. He implored Indian not to worry about their bank deposits.

Coronavirus fight-RBI reduces repo rate by 75 basis points to 4.4 per cent.EMIs put on hold.