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RBI's decision to cut lending rate will make loans affordable: Sitharaman

The RBI reduced the repo rate by 40 basis points to a historic low of 4 per cent, besides extending loan moratorium for all retail and commercial borrowers by another three months till Aug 31

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Reserve Bank of India | Nirmala Sitharaman | loans

BS Web Team & PTI  |  New Delhi 

Nirmala sitharaman, Finance minister

Finance Minister on Friday said the RBI's decision to cut the benchmark will make affordable amid the Covid-19 crisis.

The RBI on Friday reduced the repo rate by 40 basis points to a historic low of 4 per cent, besides extending loan moratorium for all retail and commercial borrowers by another three months till August 31.



"The RBI decision, not just this one even earlier, has been very timely, well thought through and made a lot of difference then and I guess even now it will make a lot of difference to the sentiment which prevails and also immediately make affordable liquidity available," Sitharaman told DD

"The extension of the moratorium is something which all of us have waited for, and I only welcome the decision of the RBI like the last time. It is timely and purpose serving,"she added.

First Published: Fri, May 22 2020. 23:59 IST
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