India’s Federal Reserve has decided to cut rates, and has announced steps to boost liquidity as it attempts to counter the economic impact of the outbreak of the Corona virus.
And revealed the monetary policy statement issued by the Central Bank of India, on Friday, that the bank decided to reduce the interest rate by 75 basis points to 4.4 percent in an emergency meeting.
The Indian Reserve also decided to reduce the percentage of the cash reserve, which is the size of the deposits that banks should keep as reserves, by about 100 basis points to 3 percent, with the aim of enhancing liquidity.
After the emergency meeting of the bank’s monetary policy committee, the Governor of the Indian Central Bank, Shakhtikanta Das, said that “efforts in times of war” must be made with the assurance that hard times do not last.
The monetary policy meeting was originally scheduled for March 31, and its decision will be issued on April 3, but it did take place suddenly this week, a few days ahead of schedule.
India is currently experiencing a 3-week state of closure that started last Wednesday, as part of efforts to control the spread of the Koruna.
By 8:27 am GMT, the Indian rupee against the US dollar stabilized at the level of 75.1275 rupees.
–
