Repo Rate-Cut by the RBI to help fight against COVID19 | Nish Bhatt, Founder & CEO, Millwood Kane International

Repo Rate-Cut by the RBI to help fight against COVID19 | Nish Bhatt, Founder & CEO, Millwood Kane International


Mr. Nish Bhatt, Founder & CEO, Millwood Kane International, An Investment Consulting Firm, on the recent announcement of repo rate-cut made by the RBI to help fight against COVID19.

“India's central bank, the Reserve Bank of India in an unusual move, advanced its monetary policy meeting by a week. Global central banks, from the US Fed, European Central Bank and Bank of England have already taken the lead by announcing measures to boost demand, provide relief to the system. 

The Monetary Policy Committee which is the rate-setting body of the RBI announced a slew of measures on Friday including rates, liquidity and payment moratorium for banks. 

On the policy rate front, RBI announced a 75 bps cut to provide relief to borrowers and boost demand as the country is under a 21-day lockdown. 
Nish Bhatt,
Founder & CEO,
Millwood Kane International

The Central bank announced measures to boost liquidity in the system, overall measures are expected to infuse nearly Rs 3.74 Lakh crore. Adequate liquidity in the system will ensure a smooth flow of operations in the bond market with yields in a desirable range. 

The regulatory action which is most novel, RBI allowed banks to provide moratorium for a period of 3 months which will help borrowers pay EMIs later and not default on their payments. 

Measures announced by RBI, coupled with the government's efforts to contain the spread of Coronavirus will strengthen the fundamentals of the economy.”

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