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RBI Chief Shaktikanta Das To Hold Briefing At 10 AM

Reserve Bank of India (RBI) Governor Shaktikanta Das will address the media at 10:00 am. The announcement for press breiefing comes days after Finance Minister gave details of the Rs 20 lakh economic relief package announced by Prime Minister Narendra Modi last week.

Reserve Bank of India (RBI) Governor Shaktikanta Das will address the media at 10:00 am. The announcement for press breiefing comes days after Finance Minister gave details of the Rs 20 lakh economic relief package announced by Prime Minister Narendra Modi last week.

The economic rescue package outlined last week rests largely on boosting company credit for micro, small and medium enterprises (MSMEs), but it had scant new public spending, tax breaks or cash support to revive demand.

The economic stimulus package, according to analysts and economists, are unlikely to have any meaningful impact soon.

The Indian economy is likely to suffer its worst quarter since the mid-1990s in the April-June quarter, shrinking 5.2%, reported news agency Reuters.

The only way to boost demand may be lowering interest rates to boost consumption, analysts said.

“Inflation is expected to fall off sharply in coming months towards the 2% range … Thus the RBI does have room to reduce rates,” said Sameer Narang, chief economist at Bank of Baroda.

The RBI cut interest rates by a sharper-than-expected 75 basis points in late March. Markets and economists now expecting at least another 75-100 basis points cuts in the remainder of this fiscal year.

“It remains to be seen how the RBI pushes for aggressive rate transmission, which still is at precariously low levels,” analysts at Credit Suisse said in a note.

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