Covid-19 relief: RBI cuts repo 75 bps; defers term-loan EMIs for 3 months

Repo down to 4.4%; reverse repo reduced by 90 basis to 4%; CRR lowered by a percentage point to 3%; inflation and growth forecast not given as they would depend on the extent of the coronavirus crisis

The Reserve Bank of India (RBI) on Friday came out all guns blazing to arrest a potential slowdown caused by coronavirus (Covid-19), lowering the policy repo rate by 75 basis points to 4.4 per cent, and telling all banks and housing finance companies not to take instalments on term loans for three months.

“Given the COVID-19 stress, the six-member monetary policy committee (MPC) advanced their March 31-April 3 meetings to March 24, 26 and 27, and voted 4:2 to cut the policy repo rate to 4.4 per cent,” said Reserve Bank of India Governor Shaktikanta Das, who addressed the media