RBI Press conference Highlights..

RBI Press conference Highlights..

• Moratorium & other relaxations provided earlier are being extended by 3 more mths
• Repo rate reduced by 40bps from 4.4% to 4%
• MPC voted in 5:1 ratio
• 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%.
• 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
• 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

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