Daijiworld Media Network - New Delhi
New Delhi, Mar 16: RBI Governor Shaktikanta Das on Monday, March 16, said that only Monetary Policy Committee (MPC) will take a call on an interest rate cut. However, do not rule out anything, he said.
Das’s statement comes after speculations that RBI will cut interest rate as an emergency move to improve Indian economy which has been affected by the rapidly escalating coronavirus pandemic.
In the press meet, Das announced various measures including Rs 1 lac crore Long Term Repo Operations (LTROs) to ease liquidity amid Coronavirus scare which is said to be slowly turning into a big concern.
Shaktikanta Das
He announced steps including a US dollar-rupee sell-buy swap and long-term repo operations (LTRO). The next US dollar swap round will be held on March 23.
“While assuring that RBI is ready to take all necessary measures to mitigate the impact of Coronavirus, he said domestic liquidity conditions remain comfortable. However, coronavirus (COVID-19) can impact economic activities and growth momentum. Sectors such as tourism, airlines, hospitality, domestic trade and transport suffering loss of activity,” he said.
Speaking on the YES Bank crisis, he assured account holders that their money is safe and told them there is no need for panic after moratorium is lifted on March 18, 2020. “The revival plan for YES Bank is completely credible and sustainable. RBI and government have quickly worked on addressing the issue. If there is a requirement for additional liquidity, the RBI will infuse the needed amount into the bank,” he said.
Yes Bank's new board will assume its position and the office of the administrator will cease to exist on March 26, he added.