Reserve Bank of India (RBI) Governor Shaktikanta Das said on Saturday that the novel coronavirus pandemic is the “greatest test of the robustness and resilience of our [India’s] economic and financial system.
“The coronavirus pandemic represents perhaps the greatest test of the robustness and resilience of our economic and financial system so far,” ANI news agency quoted Shaktikanta Das as saying.
In his keynote speech at the 7th SBI Banking and Economic Conclave, Shaktikanta Das called the pandemic “the worst health and economic crisis in the last 100 years with unprecedented negative consequences on production, employment and welfare. “.
“It has shaken the existing world order, global value chains, movement of labor and capital around the world,” Shaktikanta Das said.
Shaktikanta Das further said that the Monetary Policy Committee (MPC) decided to cumulatively cut the repo rate by 115 basis points. “So from February 2019, the total rate cut undertaken by RBI is 250 basis points,” he said.
He said that the RBI cut the Repo rate by 135 basis points from February 2019 to try to combat the slowdown in growth that was visible at that time.
“From February 2019, on a cumulative basis, we had reduced the Repo rate by 135 basis points until the outbreak of the coronavirus. This was done mainly to address the slowdown in growth that was visible at this time. that time and we had thoroughly addressed that in our MPC resolutions,” Shaktikanta Das said.
“The staggered impact of these measures was poised to propel a cyclical reversal in economic activity when Covid-19 brought calamity, misery, endangering people’s lives and livelihoods,” he said. said Shaktikanta Das.
In such a situation, Shaktikanta Das said, “RBI’s top priority is growth and financial stability is equally important. The RBI has strengthened its off-site monitoring mechanism to identify emerging risks.
“RBI is engaged with all stakeholders for the resolution of the Punjab and Maharashtra Cooperative Bank,” Shaktikanta Das said.
(With ANI, PTI inputs)