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RBI Press Conference LIVE: GDP Growth to Remain Negative in 2021, Says Shaktikanta Das

RBI Press Conference Live Updates: Governor Shaktikanta Das not only shared the inflation and GDP outlook for 2021, but also announced that MPC has reduced key repo rate to 4 per cent.

Reserve Bank of India (RBI) governor Shaktikanta Das will be addressing a press conference at 10 am on Friday to announce fresh measures to tackle the coronavirus crisis. This will be the third such address by the RBI governor and comes just a week after the finance minister announced five tranches of the Rs 20 lakh crore economic relief package.

In the earlier press conference, Das announced a slew of monetary policy relief measures including a 75 bps repo rate cut and liquidity measures worth several lakh crores. RBI had also announced a 3-month moratorium on term loan payments.

Follow live updates:

10:24 am: RBI governor announces some benefits for exporters. Term Loan moratorium extended by three more months.

10:17 am: Macroeconomic fundamentals have been severely hit by a coronavirus, said the RBI governor. If the inflation trajectory evolves as expected, RBI may go for further easing, said Shaktikanta Das.

10:15 am: Shaktikanta Das said that the headline inflation is expected to fall below RBI’s target of 4 per cent by third or fourth quarter. He also said that a lot will depend on how India can gradually ease the lockdown and how quickly the Covid-19 curve can be flattened.

10:10 am: The RBI government is now sharing key data sets to highlight how Covid-19 has impacted each sector. He also added that India’s foreign reserves have increased. “India’s foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, foreign exchange reserves stand at 487 billion US dollars,” he said. Das also shared inflation and demand outlook in the near future.

10:05 am: Shaktikanta Das announced that the Monetary Policy Committee of the RBI has decided to cut key repo rate by 40 basis points to 4 per cent, while reverse repo rate has been brought down to 3.35 per cent. The RBI has also maintained an accommodative stance and said it would keep supporting the economy till required.

9:53 am: A cut in the key repo and reverse repo rate may also be on the cards besides more liquidity measures to help smaller lenders. RBI is also expected to comment on the Centre’s Rs 20 lakh crore relief package.

9:50 am: Many industries and businesses have been appealing to the government and RBI to extend the loan moratorium by at least three more months as they have been hit hard by the prolonged lockdown.

9:48 am: Many have asked the RBI to extend the three-month moratorium on terms loans. Reserve Bank of India Governor Shaktikanta Das may extend the moratorium further apart from announcing changes in NPA reclassification.