In order to counter the outgrowth from the ongoing coronavirus lockdown, RBI on Friday announced some relief measures.

Addressing a press conference RBI Governor Shaktikanta Das announced a cut in the repo rate by 40 basis points to 4 percent, while the reverse repo rate was reduced to 3.35 percent.

He further added that the term loan moratorium has been extended for another three months till August 31
And said that the Acquired interest for the moratorium period can be transformed into a term loan and doesn’t need to be paid instantly.

The governor also said that the GDP growth outlook for fiscal year 2020-2021 has discovered to be in negative territory.

Das said that the inflation is very uncertain as evaluated in terms of the Monetary Policy Committee during the coronavirus situation. But he also added that inflation should ease by the second half of this year.

RBI’s announcement came after Prime Minister Narendra Modi’s announced Rs 20 lakh crore economic package in order to deal with the ongoing Covid-19 pandemic.