New Delhi, Mar 27: Welcoming the Reserve Bank of India’s decision cutting Repo rate and steps to provide more liquidity and direction on deferment of EMI dates, Prime Minister Narendra Modi on Friday said the measures will improve liquidity, reduce cost of funds, help middle class and businesses.
“Today RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce cost of funds, help middle class and businesses,” the PM tweeted.
The RBI on Friday announced a host of measures aimed at minimising the damage from Covid-19.
The MPC decided by 4-2 majority to reduce repo rate by 75 basis points to 4.4 per cent.
The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.
Sitharaman lauds RBI rate cut
Meanwhile, Union Finance Minister Nirmala Sitharaman lauded the move and stressed the need for lower cost of retail loans and that reduced interest rate needs quick transmission.
Posting on Twitter, Sitharaman said that the three-month moratorium on payments on term-loan installments and interest on working capital would give the much-needed relief amid the national lockdown in view of the coronavirus scare.
“Appreciate @RBI @DasShaktikanta”s reassuring words on financial stability. The 3- month moratorium on payments of term loan instalments (EMI) & interest on working capital give much-desired relief. Slashed interest rate needs quick transmission. #IndiaFightsCoronavirus,” the FM said.
Applauding the statement, Sitharaman said in another tweet: “Also welcome @RBI governor @DasShaktikanta”s statement: ”The macro-economic fundamentals of the Indian economy are sound, and in fact stronger than what they were in the aftermath of the global financial crisis of 2008-09.” And his timely reminder to #StayCleanStaySafeGoDigital.”
