Covid an invisible assassin, preserve stability, arrest slump: MPC minutes

They noted that the pandemic hadn't destroyed the economy's production capabilities, and once the situation starts normalising, domestic demand would need to be stimulated swiftly

The six monetary policy committee (MPC) members unanimously agreed to a large rate cut to shield the economy from the pandemic and arrest slowdown in demand.

The members suggested that the flow of finance should continue, and there must be efforts to preserve financial stability. They observed that the pandemic has not destroyed the production capability of the economy. Once the situation starts to normalise, domestic demand will need to be stimulated, they said.

The central bank must preserve its accommodative stance for as long as necessary to revive growth. Even as the impact of the pandemic is severe, the macroeconomic fundamentals