New Delhi: RBI Governor Shaktikanta Das on Friday announced a slew of monetary measures to bring the distressed economy back on track.
Amid other measures, the Reserve Bank slashed the repo rate by 40 basis points to 4 per cent. The move will further make the loans cheaper and empower the businesses and other customers with more liquidity.
Similarly to discourage banks from parking their funds with the RBI, the reverse repo rate has been kept at 3.35 per cent reduced from 3.75 per cent.
Since the businesses in the country have come to a halt amid the nationwide lockdown, the growth rate of the economy has been severely impacted.
“There will be gradual revival of activity and demand by the second half of FY-2021. Gross Domestic Product will remain in negative territory this year with some pickup in pulses segment,” RBI Governor said.
Earlier, RBI had cut the repo rate by 75 basis points in March this year.