Reserve Bank of India (RBI) governor Shaktikanta Das are going to be addressing a news conference at 10 am on Friday to announce fresh measures to tackle the coronavirus crisis. this may be the third such address by the RBI governor and comes just every week after the minister of finance announced five tranches of the Rs 20 lakh crore economic relief package.
In the earlier news conference , Das announced a slew of monetary policy relief measures including a 75 bps repo rate cut and liquidity measures worth several lakh crores. RBI had also announced a 3-month moratorium on term loan payments.
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10:30 am: Of all the measures announced, the extension of the moratorium for 3 months was the most important one and is predicted to supply a big boost to companies who are unable to pay pending dues thanks to the lockdown. The RBI went ahead with the move today and now the moratorium on terms loans will last till August 31.
"Three-month moratorium we allowed on term loans&working capitals we allowed certain relaxations. in sight of the extension of the lockdown&continuing disruption on account of coronavirus, these measures are being further extended by another 3 months from June 1 to Aug 31," he said.
10:24 am: RBI governor announces some benefits for exporters. Term Loan moratorium extended by three more months till August 31. RBI governor also announced several measures to assist banks within the wake of the crisis. He then went on to mention that the RBI, like other central banks within the country, will make sure that the country's economy is back on its feet.
10:17 am: Macroeconomic fundamentals are severely hit by a coronavirus, said the RBI governor. If the inflation trajectory evolves needless to say , RBI may choose further easing, said Shaktikanta Das.
10:15 am: Shaktikanta Das said that the headline inflation is predicted to fall below RBI's target of 4 per cent by third or fourth quarter. He also said that tons will depend upon how India can gradually ease the lockdown and the way quickly the Covid-19 curve are often flattened.
10:10 am: The RBI governor is now sharing key data sets to spotlight how Covid-19 has impacted each sector. He also added that India's foreign reserves have increased. "India's exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, exchange reserves stand at 487 billion US dollars," he said. Das also shared inflation and demand outlook within the near future," Das said.
10:05 am: Shaktikanta Das announced that the Monetary Policy Committee of the RBI has decided to chop key repo rate by 40 basis points to 4 per cent, while reverse repo rate has been brought right down to 3.35 per cent. The RBI has also maintained an accommodative stance and said it might keep supporting the economy till required.
9:53 am: A cut within the key repo and reverse repo rate can also get on the cards besides more liquidity measures to assist smaller lenders. RBI is additionally expected to discuss the Centre's Rs 20 lakh crore relief package.
9:50 am: Many industries and businesses are appealing to the govt and RBI to increase the loan moratorium by a minimum of three more months as they need been hit hard by the prolonged lockdown.
9:48 am: Many have asked the RBI to increase the three-month moratorium on terms loans. Federal Reserve Bank of India Governor Shaktikanta Das may extend the moratorium further aside from announcing changes in NPA reclassification.