The Indian economy is inching towards normalcy, says the Governor of Reserve Bank of India (RBI), Shaktikanta Das. The Governor said that since the government has eased the lockdown, the economic activities in India have also started gaining momentum.
The RBI Governor was addressing the 7th SBI Banking & Economic Conclaves on Saturday July 11 where he said that RBI took several measures to protect the financial system during the lockdown period.
Governor Shaktikanta Das also informed that RBI cut the Repo rates by 135 basis points since February 2020 till the onset of COVID19. He said, “That was done mainly to tackle the slowdown in growth which was visible at that time & we had elaborately touched upon it in our MPC Resolutions.”
The Governor further insisted that RBI is focused on building buffers and raising capital to build resilience in the financial system, to keep the credit inflow into the economy.
In his address he said, ”The lagged impact of these measures was about to propel a cyclical turnaround in economic activity when #COVID19 brought with it calamities, miseries, endangering of lives & livelihood of people.”
He also informed that the MPC has decided to cumulatively cut the Policy repo rate by 115 basis points and from February 2019 the total rate cut that RBI has undertaken is 250 basis points.