The RBI has hinted that interest rates may fall further soon

New delhi date. Thursday 27 August 2020

The Reserve Bank of India (RBI) on Thursday hinted at further cuts in interest rates, saying measures to save the economy from the Kovid-19 epidemic would not be scrapped soon.

The RBI did not change the repo rate in its policy review issued on August 6. The central bank has slashed the policy rate by 1.15 per cent in the last two sessions. The current repo rate is four per cent, the reverse repo rate is 3.35 per cent and the marginal standing facility rate is 4.25 per cent.

He said caution should be exercised to bring the economy back on track after the epidemic. Speaking on public relief measures taken by the central bank in the last few days, Das said there was no way to assume that the RBI would withdraw the measures soon.

He said that once the outbreak of Covid-19 epidemic and other aspects were clarified, the RBI would start giving its forecast on inflation and economic growth. He said that overall, the banking sector has been consistently strong and stable and the consolidation of public sector banks is a step in the right direction.

Das said the shape of banks is necessary but efficiency is more important than this. The bank will face stress. It is worth mentioning that but more importantly, the bank responds to the challenges in some way and faces them.