(Kajal Singh intern journalist): Reserve Bank of India Governor Shaktikanta Das said in a press conference today that in the MPC meeting, it has been decided to reduce the current repo rate of 4.4 by 0.4 percent.
New Delhi: Reserve Bank of India Governor Shaktikanta Das has held a press conference today, he said in its three-day meeting monetary policy committee decided to slash the repo rate. This reduction will be 0.4 percent and thus the repo rate has come down to 4 percent, which was 4.4 percent earlier.
The MPC meeting was to be held from 3 to 5 June but it was conducted during 20-22 May, wherein most of the members were in favor of reducing the repo rate. However, there has been no change in the existing reverse repo rate and it has been retained at 3.35 percent.
By reducing the repo rate, banks will be able to get loans from RBI at a lower rate of interest, and banks will be benefitted. It may also lead to the reduction of EMI of the customers.
Shaktikanta Das said that the economy has been damaged due to the Corona crisis, but through joint efforts, the country can recover from this situation. However, the country’s GDP growth will be negative during the financial year 2020-21. In the coming time, it will be a challenge to keep inflation low in the country.