RBI gave indications that interest rate cuts will continue, Shaktikanta Das said – banking sector remains strong and stable

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Mumbai: Indicating further cuts in interest rates, the Reserve Bank of India (RBI) on Thursday said that measures to save the economy from the Kovid-19 epidemic will not be removed soon. RBI Governor Shaktikanta Das said in a program, “Whether rate cuts or other policy steps, the arrows of our quiver are not over yet.” Also Read – How is ‘Bad Bank’, why the former RBI Governor is advocating it

The RBI did not change the repo rates in the policy review released on August 6. The central bank had earlier cut the policy rate by 1.15 percent in the last two meetings. At present, the repo rate is 4 percent, reverse repo rate is 3.35 percent and marginal standing facility (MCF) rate is 4.25 percent. Also Read – Rahul Gandhi gave advice to PM Narendra Modi on RBI report, said – help the poor

He said that after the prevention of the epidemic, the economy will have to proceed with caution to get on the path of strength. Regarding the relief measures announced by the central bank recently, Das said, “By no means should we assume that the RBI will withdraw the measures soon.” Also Read – RBI did not change the interest rate, it will be cut if necessary: ​​Governor Shaktikanta Das

He said that once there is clarity on the outbreak and other aspects of the Kovid-19 epidemic, the RBI will start making its forecasts on inflation and economic growth.

He said that overall, the banking sector remains steadily strong and stable and the integration of public sector banks is a step in the right direction. Das said, “The size of banks is important, but efficiency is more important.”

“It is obvious that banks will face stress, but more important is how banks respond to challenges and deal with them,” he said.

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