RBI slashes interest rates as Coronavirus lockdown hits economy

The Reserve Bank of India (RBI) has slashed interest rates by 75 basis points in an emergency move to revive economic growth hit by the coronavirus pandemic and the nationwide lockdown. The central bank cut the repo rate to 4.4 per cent from 5.15 per cent and lowered the reverse repo rate by 90 basis points to 4 per cent from 4.9 per cent. It also reduced the banks’ cash reserve ratio by 100 basis points to inject Rs 1.3 trillion of liquidity into the financial markets.