RBI Leaves Key Rates Unchanged, Real GDP To Remain Negative

Mumbai: The Reserve Bank of India (RBI) on Thursday said inflation is expected to be at elevated levels during the second quarter, but may ease in the second half of the current fiscal year.

Supply chain disruptions persist, resulting in inflation pressures across segments, RBI Governor Shaktikanta Das said while announcing the decisions taken by the central bank's Monetary Policy Committee (MPC).

Loans against gold enhanced to 90% of value from current 75% to mitigate COVID impact on households

Stressed MSME borrowers to be eligible for restructuring of debt if their accounts classified standard

Window to restructure loans of corporate/individual borrowers: RBI Governor pic.twitter.com/8S1c5GxIWI

— OTV (@otvnews) August 6, 2020

RBI maintained the key lending rates, leaving them unchanged. Accordingly, the Monetary Policy Committee of the central bank maintained the repo rate -- or short-term lending rate for commercial banks, at 4 per cent.

The MPC voted to maintain accommodative stance, thus opening up possibilities for more future rate cuts.

He also said that global economic activity has remained fragile and the surge in COVID-19 cases has subdued early signs of revival.

Rs 10,000 cr additional liquidity facility to be provided by NHB, NABARD, says #RBI Governor Shaktikanta Das pic.twitter.com/nGQxfElA8f

— OTV (@otvnews) August 6, 2020

Pinning hope on the agriculture sector, he said, Kharif crop harvest is expected to boost rural demand.

Economic activity had started to recover, but a surge in coronavirus infections has forced imposition of lockdowns, he added.

(With Agency Inputs)

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