RBI Governor said that India is expected to post sharp turnaround by growing at 7.4 per cent in FY22 as per IMF.
Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that the RBI is doing everything to fight the epidemiological challenge that the world is facing. "India's growth rate is expected to be highest among G20 nations, as per IMF estimates," said RBI governor. RBI Governor said that India is expected to post sharp turnaround by growing at 7.4 per cent in FY22 as per IMF. Das further added that the IMF has estimated cumulative loss to global GDP in 2021, 2022 at $9 trillion.
"India is expected to post sharp turnaround in 2021-22," RBI Governor said quoting IMF projection further.
The RBI has also cut Reverse repo rate by 25 BPS to 3.75%. Reverse Repo Rate as of February 2020 was 4%. The cut in reverse repo rate is to encourage banks to lend more, said RBI Governor Shaktikanta Das.
Banks and financial institutions have risen to the occasion and provided services- their efforts are praiseworthy, the Governor said.
This is the second time that the governor has addressed the media since the nationwide lockdown was imposed from March 25.
On March 27, RBI held a historic pre-term MPC (Monetary Policy Committee) meeting wherein the repo rate was cut by a record 75 basis points. The repo rate was reduced to a 15-year-low of 4.40 per cent and was also the steepest cut since October 2004.
The same day, the central bank cut the cash reserve ratio by 100 bps to 3 per cent apart from announcing various measures to boost liquidity in the system.
There were calls that the 75 bps cuts were not sufficient and that RBI could go for more rate cuts and liquidity measures. Many brokerages had said RBI could slash the lending rates by another 100 bps.
