Economics
India Cuts Rate, Unleashes $50 Billion Stimulus In Virus Fight
- Repurchase rate cut to 4.4% from 5.15%, CRR cut to 3%
- RBI to hold targeted long term repo ops to boost liquidity
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The Reserve Bank of India cut interest rates and announced steps to boost liquidity in a stimulus worth 3.2% of gross domestic product to counter the economic impact of the coronavirus outbreak.
The benchmark repurchase rate was slashed by 75 basis points to 4.40%, Governor Shaktikanta Das said Friday after an emergency meeting of the rate-setting panel. The RBI also cut the Cash Reserve Ratio, the amount of deposits lenders must set aside as reserves, by 100 basis points to 3% to boost liquidity.