The RBI cuts repo rate by 75 basis points from 5.15 per cent to 4.4 per cent on Friday. The RBI monetary policy committtee, scheduled to meet by the end of the month, deferred the meeting to March 25, 26 and 27 in view of the coronavirus outbreak.
The rate cut was voted by 4:2 majority in the six-member MPC meeting. The RBI will continue its accomodative stance as long as the economy is brought back to normalcy.
The reverse repo rate, too, has been slashed 90 bps to 4 per cent.
The RBI has also requested the banks to enhance lending activities. Further, the global fall in oil prices may help India. "Food and fuel prices will provide relief," said RBI Governor Shaktikanta Das.
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