New Delhi: ‘COVID-19 is the worst health and economic crisis in last 100 years with unprecedented negative consequences for output, jobs and well being’, said Reserve Bank of India (RBI) Governor Shaktikanta Das at the 7th SBI Banking & Economics Conclave on Saturday. Also Read - Noida Lockdown News: Gautam Buddh Nagar Police Seizes 11 Vehicles, Issues Challans to 1470 People For Flouting Curbs
Delivery a keynote address at the event, Das asserted that the pandemic has dented the existing world order, global value chains, labour and capital movements across globe. Also Read - Mumbai-based Wockhardt Announces COVID-19 Vaccine Deal With UK Govt, Including Oxford Cure
He said that COVID-19 pandemic perhaps represents so far the biggest test of robustness and resilience of our economic and financial system. Also Read - West Bengal Lockdown News: State Revises Lockdown Dates, to Impose Complete Shutdown on 7 Days in August
Das also talked about the key measures, the central bank had taken so far, to boost the economic growth.
“From February 2019 onwards, on cumulative basis, we had cut the Repo rate by 135 basis points till the onset of COVID-19. That was done mainly to tackle the slowdown in growth which was visible at that time and we had elaborately touched upon its in our MPC Resolutions”, he stated, adding that the MPC has decided to cumulatively, cut the Policy repo rate by 115 basis points.
So from February 2019, the total rate cut that RBI has undertaken is 250 basis points
Furthermore, he said, “The lagged impact of these measures was about, to propel a cyclical turnaround in economic activity when COVID-19 brought with it calamities, miseries, endangering of lives and livelihood of people.”