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May 22, 2020 01:32 PM IST | Source: Moneycontrol.com

RBI Governor Press Conference Highlights | Term loan moratorium extended till August 31, says Shaktikanta Das

The RBI MPC agreed on a further cut of 40 basis points in the repo rate bringing it down to 4 percent. The MPC had in March cut repo by a massive 75 bps to 4.4 percent.

RBI Governor Shaktikanta Das May 22 addressed the media for the third time in three months to announce Coronavirus-related relief measures.

Here are the key highlights:

--Repo rate cut by 40 bps to 4 percent, Reverse Repo gets adjusted to 3.35 percent.

--GDP growth outlook for FY21 seen in negative territory, some pick up seen in H2 of FY21.

--Term loan moratorium extension for another three months till August 31

--Accumulated interest for moratorium period can be converted into a term loan. It does not have to be repaid immediately after moratorium ends

--Group exposure limit for lenders increased to 30 percent from 25 percent
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  • May 22, 2020 01:32 PM IST

    Highlights of RBI measures since lockdown: Growth and inflation statements
    > May 22
    - FY21 GDP growth seen in negative territory
    - MPC believes inflation outlook is uncertain

    > April 17
    - Inflation could decline further and settle below 4 percent by H2FY21
    - Inflation to fall below 4 percent target by Q3, Q4

    > March 27
    - Implied GDP growth of 4.4 percent in H2 is now at risk
    - Projection of growth and inflation to be heavily contingent on spread of pandemic

  • May 22, 2020 01:31 PM IST

    Highlights of RBI measures since lockdown: Reverse repo rate cut by 155 bps
    > May 22: Reverse Repo Rate cut by 40 bps to 3.35 percent
    > April 17: Reverse Repo Rate cut by 25 bps to 3.75 percent 
    > MARCH 27: Reverse Repo rate cut by 90 bps to 4 percent 

  • May 22, 2020 01:27 PM IST

    Highlights of RBI measures since lockdown: Repo rate cut by 115 bps
    > May 22: RBI cuts repo rate by 40 bps to 4 percent
    > March 27: RBI cuts repo rate by 75 bps to  4.40 percent

  • May 22, 2020 01:12 PM IST

    Highlights of RBI measures since lockdown
    > Repo rate cut by 115 bps
    > Reverse repo rate cut by 155 bps
    > FY21 GDP growth seen in negative territory
    > MPC believes inflation outlook is uncertain

  • May 22, 2020 12:55 PM IST

    Among the different sectors, the RBI announcements today are expected to benefit the real estate sector the most. This includes both the 40 basis points repo rate cut as well as the three-month term loan moratorium extension. These measures will infuse liquidity in real estate sector.

  • May 22, 2020 12:48 PM IST

    Mihir Vora, Director & Chief Investment Officer, Max Life Insurance said that the credit risk-aversion in the financial markets are likely to continue. 

    "The high-rated borrowers will continue to get easy funding, and the lower-rated borrowers will  continue to struggle to raise funds. More direct fiscal support to businesses, workers and stressed segments will be needed to contain job losses, stimulate the demand-side of the economy and encourage private sector investments to counter the demand shock due to the domestic lockdown and fall in exports," said Vora.

  • May 22, 2020 12:42 PM IST

    RBI governor Shaktikanta Das also said in his speech that central banks are typically seen as conservative institutions. Yet when the tides turn and all the chips are down, Das said that it is to them that the world turns for support. 

  • May 22, 2020 12:41 PM IST

    As the nation prepares for this future, RBI governor Shaktikanta Das said that the words of Mahatma Gandhi should inspire us to fight on, "We may stumble and fall, but shall rise again..."

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