EMIs put on hold, big-bang interest rate cut as RBI joins fight against coronavirus
Mumbai: The RBI on Friday put on hold EMI payments on all term loans for three months and cut interest rate by steepest in more than 11 years as it joined the government effort to rescue a slowing economy that has now got caught in coronavirus whirlwind.
The Reserve Bank of India (RBI) cut repo to 4.4 per cent, the lowest in at least 15 years. Also, it reduced the cash reserve ratio maintained by the banks for the first time in over seven years. CRR for all banks was cut by 100 basis points to release Rs 1.37 lakh crore across banking system.
The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor. RBI Governor Shaktikanta Das predicted a big global recession and said India will not be immune.
It all depends how India responds to the situation, he said.
Global slowdown could make things difficult for India too, despite some help from falling crude prices, Das said, adding food prices may soften even further on record crop production.
Aggregate demand may weaken and ease core inflation further, he noted.
The liquidity measures announced include auction of targeted long-term repo operation of 3 year tenor for total amount of Rs 1 lakh crore at floating rate and accommodation under Marginal Standing Facility to be increased from 2 per cent to 3 per cent of Statutory Liquidity Ratio (SLR) with immediate effect till June 30.
Combined, these three measures will make available a total Rs 3,74,000 crore to the country's financial system.
After cutting policy rates five times in 2019, the RBI had been on a pause since December in view of high inflation.
The measures announced come a day after the government unveiled a Rs 1.7 lakh crore package of free foodgrains and cash doles to the poor to deal with the economic impact of the unprecedented 21-day nationwide lockdown.
While the Monetary Policy Committee (MPC) of the RBI originally was slated to meet in the first week of April, it was advanced by a week to meet the challenge of coronavirus.
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Trump tells Fox News he's no longer sending Witkoff, Kushner to Pakistan for Iran talks
Islamabad (AP): President Donald Trump says he told top US envoys not to travel to Pakistan to negotiate with Iran, telling Fox News that "they can call us anytime they want.”
In a brief phone interview Saturday, Trump told Fox News that he told US negotiators Steve Witkoff and Jared Kushner “you're not going to be making any more 18 hour flights to sit around talking about nothing.”
Trump also said of the US side “we have all the cards.”
His comments came after the White House said Friday that Witkoff and Kushner would be heading to Pakistan for another round of negotiations with Iran.
