Here's the full text of RBI Governor Shaktikanta Das' May 22 conference
Read what the RBI Governor said here in full:
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
Growth, inflation statements since lockdown
Reverse repo rate cut since lockdown
Repo rate cut since lockdown
Highlights of RBI measures since lockdown
How is the transmission?
D-Street gave a thumbs down to RBI rate cut
Real estate sector to benefit
Relaxation for Consolidated Sinking Fund
Asset classification rules to continue
Kotak Institutitional Equities view
New term loan for accumulated interest
Entire MPC votes for repo rate cut
No stance in policy stance by MPC
Term loan moratorium extension
Term loan moratorium extended
MPC cuts the repo rate
Food inflation under pressure
RBI cuts repo rate by 40 bps
Another EMI moratorium on the cards?
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
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.
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.
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