RBI press meet HIGHLIGHTS: No emergency rate cut today as RBI decides to take decision in MPC meet

By: |
Updated: March 16, 2020 5:23:55 pm

RBI Governor Shaktikanta Das on Monday didn't announce an 'emergency' rate cut and said that only MPC can decide on the issue.

RBI, RBI rate cut, scheduled policy review, RBI MPC, MSME, Barclays, GDP expansion, global growthThe revival plan for YES Bank is completely credible and sustainable, said Shaktikanta Das.

RBI Governor Shaktikanta Das on Monday didn’t announce an ’emergency’ rate cut and said that only MPC can decide on the issue. “Only MPC can cut rates, don’t rule out anything”, Shaktikanta Das added. However, he announced a slew of measures including Rs 1 lakh crore LTROs to ease liquidity amid Coronavirus scare which is said to be slowly turning into a big concern. In a separate announcement, he told YES Bank account holders that their money is safe and there is no need for panic withdrawal after the moratorium is lifted on March 18, 2020. The revival plan for YES Bank is completely credible and sustainable, Shaktikanta Das also said, adding that both RBI and government added swiftly. If there is a requirement for additional liquidity, the RBI will infuse the needed amount into the bank, he added.  Meanwhile, the RBI’s next monetary policy is due on April 3, 2020. The US Fed on March 15, 2020, slashed benchmark interest rate by a percentage point to near zero in an attempt to offset the negative impact of the COVID-19 outbreak on the US economy. The Fed also purchased another $700 billion worth of treasury bonds and mortgage-backed securities. In addition, it entered into an agreement with five other foreign central banks, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank, to cut their rates on currency swaps to keep the financial markets functioning normally.

Live Blog

Highlights

    17:16 (IST)16 Mar 2020
    RBI directs banks/FIs to assess impact on balance sheet, asset quality due to coronavirus outbreak

    Reserve Bank on Monday asked all banks and financial institutions to assess the impact on their balance sheet, asset quality, liquidity, among others, in the wake of the potential threat arising out of the spread of coronavirus disease in India. Several confirmed cases have also been detected in India, which highlight the need of a co-ordinated strategy for handling the emerging situations for protecting the resilience of the Indian financial system, RBI said in a notification addressed to banks, urban cooperative banks, NBFCs, payment and small finance banks.

    17:12 (IST)16 Mar 2020
    YES Bank depositor's money safe, Shaktikanta Das

    Yes Bank depositors' money fully safe and secure and bank's identity will be retained as a private sector entity, says RBI Governor Shaktikanta Das.

    16:53 (IST)16 Mar 2020
    It is the responsibility of the RBI that response to fight Coronavirus is nor premature or delayed: Shaktikanta Das

    While not cutting rates, RBI Governor Shaktikanta Das acknowledged that it is the responsibility of the central bank to ensure that the measures that are implemented to fight the impact Coronavirus will have on the economy are neither delayed or premature.

    16:49 (IST)16 Mar 2020
    Impact of Coronavirus on India will be less, says Shaktikanta Das

    RBI Governor Shaktikanta Das said that India is relatively insulated from global value chain and the impact will be limited on India.

    16:47 (IST)16 Mar 2020
    Advice banks to encourage digital payments: RBI

    Reserve Bank of India Governor, Shaktikanta Das said that the RBI has asked banks to encourage digital payments and avoid crowded places as measure for Coronavirus.

    16:06 (IST)16 Mar 2020
    Global markets slump amid coronavirus scare

    Reacting to the shutdown taking place globally due to coronavirus scare, mood of the market remained dampened as credit pressures intensified on India Inc, he added. Elsewhere in Asia, bourses in Shanghai dropped 3.40 per cent, Hong Kong 4.03 per cent, Seoul 3.19 per cent and Tokyo cracked 2.46 per cent. Markets in Europe crashed up to 8 per cent in early trade.Meanwhile, Brent crude oil futures melted 7.53 per cent to USD 31.30 per barrel.

    15:50 (IST)16 Mar 2020
    Sensex falls nearly 3000 points

    Sensex plunges 2,713.41 points to end at 31,390.07 while Nifty tanks 757.80 points to 9,197.40.

    15:38 (IST)16 Mar 2020
    RBI encourages digital banking amid coronavirus pandemic

    "Banks must encourage customers to use digital banking facilities as much as possible," said RBI

    15:28 (IST)16 Mar 2020
    Coronavirus outbreak lead to complete lock-down worldwide

    Since the coronavirus outbreak that began in China in mid-November last year, over 6,000 people have been killed, most of them in China. While the pandemic has ebbed in China, the epicentre has moved to Europe now with Italy and Spain being the worst-hit, forcing both the nations to go on complete lock-down.

    15:26 (IST)16 Mar 2020
    Stock markets in free fall

    Stock markets have been in a free fall over the past week. The BSE Sensex plummeted 3,473.14 points or 9.24 per cent while the NSE Nifty lost 1,034.25 points or 9.41 per cent. On Monday, the BSE Sensex plunged over 2,000 points and the Nifty tanked below the 9,300 level.

    15:24 (IST)16 Mar 2020
    Will RBI go for over 50bps rate cut?

    Many analysts, over the past week, have said the RBI has legroom to cut rates to the tune of 65 bps by June. Some like Barclays and BofA have also spoken about the likelihood of an inter-meeting cut (before the April 3 policy meeting). Between February and October 2019, the RBI had cut the policy rates by a cumulative 135 bps to a nine-year low of 5.15 per cent.

    15:23 (IST)16 Mar 2020
    What hurried presser has in store?

    If RBI cuts rates today, this will be first inter-meeting rate reduction since the monetary policy committee was instituted in February 2016. The hurried presser comes amid widespread call for a rate cut following similar steps by the world's leading central banks.

    Next Stories
    1Bring petroleum products in ambit of GST soon: PHDCCI
    2Deepak Das takes charge as Controller General of Accounts
    3RBI likely to maintain status quo on interest rate