RBI Monetary Policy Live Updates: Repo rate cut on hold; Shaktikanta Das unveils liquidity\, stimulus measures

RBI Monetary Policy Live Updates: Repo rate cut on hold; Shaktikanta Das unveils liquidity, stimulus measures

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Updated: August 6, 2020 4:28:36 pm

RBI Monetary Policy Live Coverage August 2020: MPC has decided that the repo rate will remain unchanged amid the possibility of a high inflation. Shaktikanta Das announced Rs 10,000 crore at repo rate to NABARD and NHB to alleviate the liquidity crisis.

RBI Repo Rate Cut, RBI Interest Rate, Monetary Policy, RBI, Reserve Bank of India, shaktikanta das, repo rate, reverse repo rate, RBI live, RBI, Reserve Bank of India, shaktikanta das, repo rate, reverse repo rate, RBI liveMonetary policy August 2020: The RBI MPC has unanimously voted to maintain the status quo on policy rates.

RBI Monetary Policy August 2020 Live Updates: RBI Governor Shaktikanta Das today announced that the repo rate will remain unchanged. The RBI MPC has unanimously voted to maintain the status quo on policy rates. Shaktikanta Das added that the MPC will remain watchful with respect to inflation dynamics to further use space available on the monetary side when appropriate. The RBI Governor also announced stimulus measures, which included and additional liquidity of Rs 10,000 crore at repo rate to NABARD and NHB. Among other measures, the RBI allowed stressed MSME borrowers to restructure debt if their loans were classified as ‘standard’ as on 1 March 2020. The MSME loan restructuring scheme was already in place, but, due to the coronavirus, the MSME pain has been aggravated, and this warrants additional support, Shaktikanta Das added. In an effort to mitigate the impact of COVID-19 on households, the RBI has increased the permissible loan to value ratio (LTV) for loans sanctioned against pledge of gold ornaments and jewellery for non-agricultural purposes from 75 per cent to 90 per cent till 31 March 2021. The RBI MPC met at a time when the Indian economy lost momentum after showing a slight revival in the month of June. After 250 basis points cut in the last 1.5 years, including 115 basis points cut in the repo rate since the coronavirus pandemic began, the rates are at the bottom of the cycle. However, the credit growth has remained tepid amid the pandemic; and albeit the transmission is gaining pace, it is not adequate.