TIL Desk/Business/Mumbai/ Following are the highlights of RBI Governor Shaktikanta Das’s statement and resolution of the Monetary Policy Committee (MPC):
>>RBI cuts repo rate by 40 bps to 4 pc.
>>Reverse repo rate reduced to 3.35 pc.
>>Second sharp reduction in key policy rates in 2 months.
>>GDP growth in FY21 estimated to remain in negative territory, with some pick-up in H2.
>>Moratorium on term loan installments extended by another 3 months till Aug 31, 2020.
>>Lending institutions permitted to allow deferment of interest on working capital facilities till Aug 31.
>>RBI decides to extend time for completion of remittances against imports from 6 months to 12 months for imports made before July 31.
>>RBI extends a line of credit of Rs 15,000 crore to the EXIM Bank.
>>Maximum permissible period of export credit increased to 15 months from 12 months.
>>RBI announces measures to improve functioning of markets and market participants.
>>Forex reserves increase by USD 9.2 bn in 2020-21 (up to May 15) to USD 487 bn.
>>Top 6 industrialised states accounting for about 60 pc of industrial output largely in red/orange zones.
>>High frequency indicators point to collapse in demand beginning in March.
>>MPC opined macroeconomic impact of COVID-19 is turning out to be more severe than initially anticipated.
>>Various sectors of economy are experiencing acute stress.
>>Economic activity other than agriculture likely to remain depressed in Q1 due to lockdown.
>>Inflation outlook highly uncertain.
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