India's central bank surprises with reverse repo rate cut in bid to spur bank lending

FILE PHOTO: Shaktikanta Das, the new Reserve Bank of India Governor, attends a news conference in Mumbai, India, December 12, 2018. REUTERS/Danish Siddiqui/Files/File Photo

Since his last address on March 27, Das said that India’s economic and financial landscape has “deteriorated precipitously” in some areas. “In order to encourage banks to deploy these surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed rate reverse repo rate,” he added.

“It is doubtful whether this flow can be stemmed easily. Banks are not lending or investing because they fear that under the current conditions they may be adversely impacted if they employ the money for investments or lending,” said Joseph Thomas, head of research at Emkay Wealth Management.

Great steps by RBI 🙏🙏👏👏👌👌

Cutting a tree, then planting a seed.

I just hope they know what they are doing

The political conscience, like the belly dancer, is shaken only for money

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