The central bank unveils liquidity facility of ₹50,000 crore for access to emergency health services, and ₹10,000 crore for small finance banks’ on-lending, among a slew of measures to fight Covid-19.
The recent surge in Covid-19 infections, the central bank says, adds uncertainty to the outlook on domestic growth as restrictions could dampen demand improvement and delay the return of normalcy.
Aided by strong demand recovery, credit ratio rebounds to 1.33 in H2FY21, from 0.54 in H1FY21. GDP could grow at 11% in FY22, but the resurgence in Covid-19 cases is a key downside risk, says CRISIL.
At its first monetary policy review for 2021, the central bank kept key rates unchanged, while announcing several measures to manage liquidity.
RBI’s status quo on interest rates, guidance on inflation and GDP, and thrust on economic growth pushes equity indices to new lifetime highs.
Governor Shaktikanta Das’ latest policy statement sees FY21 growth contracting by 9.5%, but also talks about the possibility of India renewing the “tryst with its pre-Covid growth trajectory”.
Monetary policy committee keeps rates unchanged; central bank announces new measures to mitigate pandemic woes, as it sees 9.5% contraction in real GDP for FY21.
Franklin Templeton India has closed six yield-oriented schemes—which accounted for 63.4% of its total debt-oriented funds’ average AUM. It links the closure to Covid-19-related market dislocations.
Round II of RBI’s Covid-19 crisis measures was received by the Sensex and the Nifty 50 gaining 1,116 and 331 points each before closing 986 and 273 points higher from the previous day’s close.
A ₹1-lakh crore liquidity window, reduction in reverse repo rate, support for NBFCs, and relaxation of NPA classification norms are ways in which the RBI wants to keep the economic wheel turning.
