Reserve Bank of India (RBI) governor Shaktikanta Das, on March 27, announced a massive 75 basis points cut in repo rate as a measure to counter the economic slowdown caused by the COVID-19 pandemic. This was the fifth biggest repo rate cut by RBI in the last two decades. Repo rate now stands at 4.40 percent vs 5.15 percent earlier.
Due to the coronavirus pandemic, central banks of major economies have taken a step to cut the rate and also announced the stimulus packages to survive the economy.
Central banks have cut their rates in response to the economic damage caused by the covid-19 epidemic
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
- India announced an economic stimulus package worth 1.7 trillion rupees (USD 22.5 billion) on Thursday to help those affected by the lockdown due to coronavirus pandemic.
- United States Senate has approved historic USD 2 trillion stimulus deals amid growing coronavirus fears
- Italy government is ready to spend as much as 25 billion euros (USD 28.3 billion) on stimulus measures to shield the economy from Europe’s worst outbreak of the coronavirus.
- China’s central bank has launched USD 79 billion stimulus for virus-hit companies
- UK government has allocated a total of almost 57 billion pounds (USD 66 billion) to fight the economic fallout from the coronavirus.