Reserve Bank of India (RBI) Governor Shaktikanta Das while addressing a press conference on Monday (16 March) announced two key measures in light of the coronavirus outbreak in India.
As reported by CNBC managing editor Shereen Bhan, the RBI Governor proposed to carry out a US Dollar - Rupee sell/buy swap on 23 March to enhance liquidity in the market. The central bank will also conduct long term repo operations (LTRO) up to Rs 1 lakh crore in multiple tranches at the present policy rate.
The RBI Governor during his address stated that the impact of coronavirus on the Indian Economy will be taken into account by the monetary policy committee (MPC). He added that any decision with regards to an intra-MPC rate cut will be taken by the MPC.
“Repo rate decision will be taken by the MPC. Don’t rule out any possibility. Depending on the situation we will decide the timing of our action”, RBI Governor was quoted as saying.
He also added that the RBI also stands ready to take any required action to mitigate the impact of the coronavirus on the Indian economy.
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