Thread by @gvkreddi

#rbigovernor PC
- MPC voted in 5:1 ratio
- Repo rate reduced by 40bps from 4.4% to 4%
- Reverse repo rate cut to 3.35% from 3.75%
- Global economy headed into recession, with mfg PMI at 11 yr low
- Growth rate of EMs expected to be 2.6% to negative 6%.

#RBI #economy #India

- MPC maintaining accommodating stance till growth revives
- Prodn of most sectors declined rapidly, industrial production shrank by 17%
- Food grain prodn at record, normal monsoon expected
- Kharif sowing higher by 44%, Rabi procurement in full flow
- Farm incomes to improve;

- Merchandise exports plunged 60.3%, imports contracted by 58.6% (worst in many yrs) in Apr
- Reserves increased & at US$487 bn
- Inflation could increase due to supply chain issues; reappraisal of import duties needed
- EM economies expected to face further outflows

#RBItoday

- 2021 GDP growth seen in negative territory
- Beyond economic activity, livelihoods affected
- Pvt Consumption affected severely
- RBI monitoring of the situation at a 'peak'
- Inflation to fall below 4% by Q3,Q4

Regulatory announcements:
4 steps taken in this regard

- Rollover SIDBI facility on refinancing by another 90 days
- Exports-Imports: Increase max. permissible limit changed from 1 yr to 15 mths; extending time period for outward remittances;
- Moratorium & other relaxations provided earlier are being extended by 3 more mths👍 #RBI

- interest accumulated would be converted into a funded interest term loan; payments to be completed by 31 Mar.
- Group exposure of banks increased from 25% to 35%
- Relaxing rules for state govt borrowing (???)

- Central Banks are the saving grace for every country.

The end🙏