RBI governor Shaktikantha Das said the global economy was in turmoil due to the lockdown imposed in the wake of the Covid-19 virus boom. He was speaking at a media conference in Mumbai. He said there were serious challenges to the economy. The economy is likely to reopen from the second half of the fiscal year. They are offering an extension of three months’ moratorium on loans. He said the Moratorium extended on term loans from June 1 to August 31.
He explained that the future of economic activity is based on corona spread. However, he said these conditions are more encouraging for agriculture. He said foodgrains production is on the rise. The rupee depreciated by 23 paise and India’s foreign exchange reserves stood at $ 487 billion. He explained that in March this year, industrial production was down 17 percent. In March and April, the cement industry was hit hard.
It announced that the repo rate to reduce from 4.40 to 4%. Also, The reverse repo rate reduced to 3.2%. He said the repo had been reduced because more funds were available in the economy. Under current conditions, it is difficult to predict inflation. He said that in the near future, inflation may depend on the implementation of lockdown regulations and on-demand in post-Corona conditions.