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RBI monetary policy review: Walking the extra mile

Since March 27, the RBI has acted proactively and ahead of time to contain the fallout of the Covid-19 pandemic.

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3 min read Last Updated : May 22 2020 | 11:31 PM IST

“It’s never crowded along the extra mile” - Wayne Dyer.

The RBI policy is best summed up in this quote. Since March 27, the RBI has acted proactively and ahead of time to contain the fallout of the Covid-19 pandemic.

First, we expect the terminal repo rate to be cut further by 100 basis points in the current cycle even after Friday’s rate cut. An aggressive cut in repo rate is the effective policy response to adjust the real rate as inflation is set to collapse in FY21. This will have a significant sobering impact on asset quality of banks,

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Topics : Coronavirus Lockdown Reserve Bank of India RBI Indian Economy RBI monetary policy Markets Market borrowings corporate India US economy Non-performing assets

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