RBI announcements will reduce cost of funds, help middle class and businesses : PM

27-03-2020

Agencies, New Delhi

Welcoming the Reserve Bank of India's decision cutting Repo rate and steps to provide more liquidity and direction on deferment of EMI dates, Prime Minister Narendra Modi on Friday said the measures will improve liquidity, reduce cost of funds, help middle class and businesses.

'Today RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce cost of funds, help middle class and businesses,'the PM tweeted. The RBI on Friday announced a host of measures aimed at minimising the damage from Covid-19.

The MPC decided by 4-2 majority to reduce repo rate by 75 basis points to 4.4 per cent. The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.