RBI measures will give ‘much desired relief’, Says Finance Minister
New Delhi :
Finance Minister Nirmala Sitharaman on Friday welcomed the RBI announcement of massive 75 basis points cut in repo rates as a measure to counter the economic slowdown caused by the Covid-19 pandemic and maintained that three month moratorium on payments of term loan instalments and interest on working capital will give much-desired relief.
”Appreciate RBI Shaktikanta Das’s reassuring words on financial stability. The three-month moratorium on payments of term loan instalments (EMI) & interest on working capital give much-desired relief. Slashed interest rate needs quick transmission,” she said in her tweet.
Ms Sitharaman also welcomed Mr Das’s statement that ”macro economic fundamentals of the Indian economy are sound, and in fact stronger than what they were in the aftermath of the global financial crisis of 2008-09”. She also appreciated Mr Das’ timely reminder to ”Stay Clean Stay Safe Go Digital”.
NITI Aayog CEO Amitabh Kant also appreciated measures taken by the RBI Governor and described as big and bold steps.
”Way to go: Progressive & timely measures by RBI Governor Shaktikanta Das’ by giving 3 month moratorium on payments of term loan instalments (EMI) & much-desired relief on interest on working capital. Slashing Repo Rate & reverse Repo Rate will infuse liquidity. Big, bold steps,” he said in his missive.
Prime Minister Narendra Modi said the announcements will improve liquidity, reduce cost of funds, help middle class and businesses.
”Today RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce cost of funds, help middle class and businesses,” he tweeted.
To check the economic slowdown in the wake of COVID-19, the RBI on Friday, cut key rates as Repo rate by 75 basis points and reverse Repo of 100 basis points. Now repo rate would be 4.4 per cent and Reverse Repo would be 4.15 per cent. Mr Das also announced a moratorium of three months of EMI on all outstanding loans.
The Governor predicted a big recession coming for the world and he warned that India won’t be immune. It all depends how India responds to the situation, he added.