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

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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.

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