RBI pulled out its bazooka to tackle Covid-19 slowdown: Experts on rate cut

The Reserve Bank of India (RBI) slashed interest rates on Friday, following other central banks, in an emergency move to counter the economic fallout from a fast-spreading coronavirus.

The RBI said it was maintaining its “accommodative” stance, and would keep its position “as long as necessary” to revive growth, while ensuring inflation remained within target.

The bank’s six-member monetary policy committee cut the repo rate by 75 basis points (bps) to 4.40%, in line with expectations. The reverse repo rate was reduced 90 bps to 4%.

Abheek Barua, Chief Economist, HDFC Bank, New Delhi

“In many ways the RBI’s measures went beyond the market’s