On Friday, the 27th of March 2020, in an emergency move to curb out the impacts of a global-scale recession stemmed from a multi-year low crude oil price coupled with a pandemic in the world’s fifth largest economy by nominal GDP, the Reserve Bank of India (India’s Central Bank) had slashed its benchmark interest rate, as the world’s second-most densely populated country had been bracing for the menacing economic downfalls of a 21-day countrywide lockdown aimed at slowing down the spread of the pandemic.
In point of fact, the Reserve Bank of India’s Friday’s (March 27th) move to slash its benchmark borrowing rate by 75bps to 4.40 per cent following a meet of its monetary policy committee through video conference came against the backdrop of the world’s largest lockdown in the South-east Asia’s No.
1 financial HubSpot, a home to 1.3 billion people. Meanwhile, as the Asia’s third-largest economy after China and Japan, had shut down its economy for 21 days and had announced a fiscal stimulus worth of $22.6 billion later this week, the Reserve Bank of India Governor Shaktikanta Das said in a statement following announcement of the 75bps rate-cut on Friday (March 27th), “Clearly a war effort has to be mounted and is being mounted to combat the virus, involving both conventional and unconventional measures in a continuously battle-ready mode. ”