By: TP News     Date: 3/27/2020 11:19:31 AM

Mumbai :

RBI Governor Shaktikanta Das on Friday in a statement announced a reduction in the repo rate by 75 basis points to 4.4 per cent while reverse repo rate is reduced by 90 basis points to 4%. The decisions were made during the RBI advances monetary policy committee meeting held between Mar 25-27as country goes through tough times amid coronavirus lockdown affecting businesses and economy at large scale. Das said that the Monetary Policy Committee voted 4:2 majority to cut 75 basis points to 4.4 per cent. The RBI Governor further said that macroeconomic fundamentals are stronger than thosein the aftermath of the 2008 financial market crisis adding that the banking system in India is safe, deposits are safe in private banks, therefore, the public should not resort to panic withdrawal.

Speaking on COVID-19 lockdown in the country, Das said,"living in an extraordinary situation, war effort needs to be mounted against coronavirus using conventional, unconventional tools. Shaktikanta Das further said that the RBI is at work and is calibrating action to meet any liquidity mode. The global slowdown can deepen with adverse implication for India, however, crude oil slump an upside indication for the country."