RBI to ensure orderly functioning of financial markets as COVID-19 spreads

Amid expectations of major central banks to take measures for mitigating the economic impact of coronavirus outbreak, the Reserve Bank of India (RBI) said on Tuesday it stands ready to take appropriate actions to ensure orderly functioning of financial markets.

Global financial markets have been experiencing considerable volatility with the spread of coronavirus triggering risk-off sentiments and flights to safe haven.

The RBI said spillovers to financial markets in India have largely been contained. Growing hopes of coordinated policy action to mitigate a broader fallout to economic activity has boosted market sentiment today, it said.

"The RBI is monitoring global and domestic developments closely and continuously and stands ready to take appropriate actions to ensure orderly functioning of financial markets, maintain market confidence and preserve financial stability," it said in a statement.

The global death toll from coronavirus exceeds 3,000 with the number of dead in Italy jumping by 18 to 52. Latvia, Saudi Arabia, Senegal and Morocco reported cases for the first time, bringing the total to more than 60 countries with the illness known as COVID-19.

In India, the number of people who have tested positive totals six.