The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) voted unanimously to leave the policy repo rate unchanged at 4 per cent. At the same time, the marginal standing facility and bank rate also remained unchanged at 4.25 per cent, while the reverse repo rate too remained unchanged at 3.35 per cent.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) voted unanimously to leave the policy repo rate unchanged at 4 per cent

Announcing measures like cut in the repo rate and further measures to support the market through video conferencing , Reserve Bank of India Governor, Shaktikanta Das on Friday stated that citizens must have faith in India’s resilience and capacity to overcome all odds.

The world’s largest lockdown is expected to have a significant impact on India. Affecting over 1.33 billion people, among other things, the shutdown will set the clock on India’s humongous infrastructure sector back by several weeks if not months.

According to Sanjeev Sanyal, Principal Economic Adviser, Ministry of Finance, India could leverage significant reduction in inflation to lower the cost of capital for infrastructure projects over the next five years.

Reserve Bank of India Governor Duvvuri Subbarao said India must move towards a monetary policy committee structure. Subbarao said this in reply to a question following a speech at the Bank of Mauritius, which has such a committee in place. The governor said RBI must have more independence in order to have a monetary policy committee