New Delhi: RBI Governor Shaktikanta Das on Saturday (July 11, 2020) said that the Indian economy has started showing signs of going back to normalcy after easing of restrictions. Talking about RBI's strategies during the lockdown phase he said that RBI has taken several measures to protect our financial system, support the economy in the current crisis.
The RBI Governor was addressing the 7th SBI Banking & Economics Conclave on Saturday in which he said, ''RBI has strengthened its offsite surveillance mechanism to identify emerging risks,'' adding, ''RBI policy action for medium-term will require a careful assessment of how the crisis unfolds.''
Speaking on the Repo rate cut he said, ''From February 2019 onwards,on cumulative basis, we had cut the Repo rate by 135 basis points till the onset of COVID19. That was done mainly to tackle the slowdown in growth which was visible at that time & we had elaborately touched upon its in our MPC Resolutions.''
The RBI Governor further stressed that to ensure credit flows RBI is focused on building buffers, raising capital to build resilience in financial system.
In his address he said, ''The lagged impact of these measures was about, to propel a cyclical turnaround in economic activity when #COVID19 brought with it calamities, miseries, endangering of lives & livelihood of people.''
He also informed that the MPC has decided to cumulatively cut the Policy repo rate by 115 basis points and from February 2019 the total rate cut that RBI has undertaken is 250 basis points.
