RBI's decision in line with PM Modi's vision, will keep economy strong: JP Nadda

BJP president JP Nda on Friday welcomed RBI's decision to reduce benchmark interest rates, saying it is in line with Prime Minister Narendra Modi's vision to take steps which are both business and people friendly and will keep ecomy strong during and after COVID-19 pandemic.

Reserve Bank on Friday unexpectedly slashed benchmark interest rates to ir lowest levels since 2000 and extended moratorium on repayment of loans for three months to ramp up support for ecomy which is likely to contract for first time in over four deces.

"Today's anuncements by RBI Gov is in line with vision of our Hon PM to take steps which are both business and people friendly," Nda said in series of tweets.

se anuncements will go a long way to help Prime Minister Narendra Modi's efforts to keep ecomy strong during and after pandemic, he said.

"RBI deserves praise for shepherding ecomy in right direction despite effects of coronavirus," Nda said.

Measures include cut in repo rate and reverse repo rate by 40 bps making cumulative rate cut to 155 bps till date and extending moratorium for ar three months till August which will provide a significant boost to all loan borrowers who are unable to pay dues because of lockdown, he said.

steps like Rs 15,000 crore line of credit for 90 days to EXIM bank and hiking exposure limits of banks will help in dealing with verse effects of COVID-19 on Indian ecomy, BJP chief said.

He furr said some positives about Indian ecomy was also shared by RBI such as India's foreign reserves have increased by USD 9.2 billion during 2020-21 and inflation is expected to fall below 4 per cent by third or fourth quarter.

(Photo credit: PTI)