RBI Pauses On Rate Cut To Curb Inflation
Mail Today|August 07, 2020
Allows banks to ease personal and corporate loan burdens

The RBI left interest rates untouched on Thursday in order to rein in rising retail inflation but allowed banks to restructure some corporate and personal loans to revive growth in an economy that has been battered by the Covid-19 pandemic.

RBI governor Shaktikanta Das said space for monetary policy easing remains, but the central bank will ensure inflation stays within its target range.

“Given the uncertainty surrounding the inflation outlook and extremely weak state of the economy in the midst of an unprecedented shock from the ongoing pandemic, the monetary policy committee has decided to keep the policy rate on hold at 4%, RBI governor Shaktikanta Das said after the three-day deliberations of the committee.

The committee, however, unanimously decided to continue to keep its accommodative policy stance “as long as necessary to revive growth,” he added.

The RBI has already reduced the repo rate by a total of 1.15% since February, on top of the 1.35% in an easing cycle last year. Retail inflation in June rose 6.09%, higher than the RBI’s 2%6% mandated target range.

DEBT RESTRUCTURING

To help banks at a time when bad loans are expected to nearly double, the RBI said it would allow a one-time restructuring of loans.

Continue reading your story on the app

Continue reading your story in the newspaper

MORE STORIES FROM MAIL TODAYView All

‘Forget Cash Reward'

Wrestler Divya’s father narrates humiliation he and his daughter faced for questioning Delhi CM Kejriwal

2 mins read
Mail Today
August 09, 2020

Why Pak New Map Is A Sham

Pakistan’s move comes exactly a year after India scrapped Art 370

2 mins read
Mail Today
August 09, 2020

BJP Sends Its 20 MLAs To Gujarat Ahead Of Trust Vote

The BJP has hit out at the Ashok Gehlot-led Congress government in Rajasthan claiming that moral and immoral means were being used in an attempt to induce BJP MLAs before the assembly session which convenes on August 14.

2 mins read
Mail Today
August 09, 2020

Men WHO Braved Odds To Save Lives

Kozhikode Plane Crash

2 mins read
Mail Today
August 09, 2020

Gamers In Delhi Easy Prey For Cybercon

Crooks make fake profiles to lure young addicts into buying gaming points, steal money with debit card & e-wallet details

4 mins read
Mail Today
August 09, 2020

Pak Maintain Firm Grip

Bundle out England for 219 to open 127-run lead on Day 3

2 mins read
Mail Today
August 08, 2020

Gates Backs Poonawalla With $150 Mn War Chest

Virus vaccine to be rolled out in early 2021

2 mins read
Mail Today
August 08, 2020

Beirut's Accidental Cargo

An unscheduled stop to pick up extra cargo led to the disaster

3 mins read
Mail Today
August 08, 2020

Virus Wreaks Havoc In U.S. As 2,060 Die In Single Day

Europe remains the hardest-hit region globally with 200K deaths

2 mins read
Mail Today
August 08, 2020

Why Chennai Fears Abeirut Redux

Presence of 740 tonnes of ammonium nitrate at Sattva freight station raises safety concerns

2 mins read
Mail Today
August 08, 2020