Business / RBI keeps repo rate steady at record low of 4% as retail inflation hits 6.09%

Hindustan Times : Aug 06, 2020, 12:49 PM
New Delhi: Reserve Bank of India (RBI) governor Shaktikanta Das is making key policy announcement on Thursday during the bi-monthly monetary policy address.

Here are the highlights:

- Priority sector lending status extended to start-ups

- Loans against gold enhanced to 90% of the value from current 75% to mitigate Covid-19 impact on households

-With Covid-19 continuing to affect economy, stressed MSME borrowers to be eligible for restructuring of debt if their accounts were classified standard

- RBI allows lenders to provide window to restructure loans of corporate, individual borrowers to ease Covid-19 impact, says Governor Das

- Rs 10,000 cr additional liquidity facility to be provided by NHB, NABARD

- In India, economic activity had started to recover, but surges of fresh infections have forced fresh lockdowns, hence several high-frequency indicators have levelled off

- Real GDP growth to remain in negative zone in 1st half and in full fiscal

- India’s economic growth to contract in first half of fiscal beginning April 2020

- Supply chain disruptions persist; inflation pressures evident across segments

- Headline inflation likely to remain elevated in Q2 but likely to ease in second half: RBI governor

- Economic activity had started to recover, but surge in infection has forced imposition of lockdowns,

- Global economic activity has remained fragile; surge in Covid-19 cases has subdued early signs of revival, says RBI Governor

- RBI to maintain accommodative stance

- Reserve Bank of India keeps interest rates unchanged at bimonthly monetary policy review

- Reverse repo rate also remains unchanged at 3.3%: RBI Governor Shaktikanta Das

- RBI keeps repo rate unchanged at 4%.