RBI cuts repo rate by 40 bps, -ve GDP forecast

RBI cuts repo rate by 40 bps, -ve GDP forecast

RBI Governor Saktikanta Das addresses a press conference. Here’s the gist.
RBI advances monetary policy committee meeting; cuts policy repo rate by 40 basis points.
RBI cuts reverse repo rate to 3.35%; to maintain accommodative stance.
Six member monetary policy committee voted 5:1 in favour of 40 bps cut in interest rate.
India seeing collapse of demand; electricity, dip in petroleum product consumption; fall in private consumption.
Pvt consumption has seen biggest blow due to COVID-19 outbreak, investment demand has halted.
The biggest blow came from private consumption slump with consumer durables production falling 33 percent in March 2020. Volume of world trade can shrink by 13-32% this year.
Headline inflation may remain firm in the first half, but will ease out in the second half.
GDP growth is estimated to be in negative territory in FY 2020-2021
Highly uncertain inflation outlook

https://news.rediff.com/commentary/2020/may/22/...