Repo rate cut by 40 basis points from 4.4 % to 4%: RBI Governor

New Delhi: The repo rate cut by 40 basis points from 4.4 % to 4% and the reverse repo rate stands reduced to 3.35%, informed Reserve Bank of India (RBI) Governor Shaktikanta Das today.

While addressing the nation, the RBI Governor today said that industrial production shrank by close to 17% in March with manufacturing activity down by 21%. Output of core industries contracted by 6.5%,.

Das also said that amidst this encircling gloom agriculture and allied activities have, however, provided a beacon of hope on the back of an increase of 3.7% in food grain production to a new record.

“India’s foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, foreign exchange reserves stand at 487 billion US dollars,” he added.

Das further said that the GDP growth in 2020-21 is expected to remain in the negative category with some pick up in second half.

“Three-month moratorium we allowed on term loans&working capitals we allowed certain relaxations. In view of the extension of the lockdown & continuing disruption on account of COVID19, these measures are being further extended by another 3 months from June 1 to Aug 31,” said the RBI Governor.

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