the Reserve Bank of India was urgently lowered its key interest rate to counter the economic consequences of the outbreak of coronavirus.
REPO Rate was lowered by 75 basis points from 5.15% to 4.4%. The regulator has not changed the rate since December, after five cuts in 2019.
the Central Bank kept the “challenging” position in relation to monetary policy and said he would keep it “as long as necessary” to revive growth while maintaining inflation within the target.
reverse REPO Rate was reduced by 90 basis points to 4%.
From March 25, the country has a regime of strict isolation. Within 21 days the borders between all regions will be closed. All the people of India have to stay at home, curfew imposed.
on Thursday, the Indian authorities introduced a stimulus package of 1.7 trillion rupees ($22,6 billion) to assist millions of poor, affected by the flash COVID-19. Finance Minister Nirmala Seetharaman said that there may be additional measures to help the economy to withstand the isolation mode.
the Reserve Bank of India announced separately on the two rounds of currency swaps to support the rupee as it fell to a record low.