Economics

India Central Bank Signals Rate Cuts as It Boosts Liquidity

RBI keeps benchmark rate unchanged, lowers reverse repo rate
Additional liquidity injection announced by Das on Friday

Reserve Bank of India Governor Shaktikanta Das says the central bank will announce more measures “as the situation warrants” to support the economy.Source: Bloomberg)

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By Anirban Nag

April 17, 2020 at 4:57 AM UTC

Updated on

April 17, 2020 at 11:28 AM UTC

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India’s central bank governor laid the ground for more interest rate cuts as he took a number of steps to boost liquidity and support lenders amid a nationwide lockdown that’s brought the economy to a virtual standstill.

Governor Shaktikanta Das kept the benchmark repurchase rate unchanged at 4.4% on Friday, but signaled that inflation will ease to below the central bank’s mid-term target of 4%, providing policy room to address risks. That space “needs to be used effectively and in time,” he said in a livestreamed address.