GOVT Monitoring Repo Rate Transmission to Consumers
Finance Minister Nirmala Sitharaman said the government is monitoring progress of various relief measures, especially the transmission of repo rate cuts to corporates and consumers to stimulate the economy, hit by COVID-19 crisis. While interacting with the Managing Committee Members of PHD Chamber of Commerce and Industry through video conferencing, she said the government has always recognised the importance of wealth creators as they generate employment opportunities and utilise resources in optimal manner for promoting the socio-economic development in the country. Sitharaman acknowledged that the Prime Minister has always facilitated a helping hand and recognised importance of MSMEs. "We are closely monitoring the situation in consultation with banks so that relief measures announced by the Government are effectively percolated at ground levels especially the transmission of repo rate cuts to consumers in terms of reduced interest rates," Sitharaman said. Last month, the RBI slashed the benchmark repurchase (repo) rate, the price at which banks borrow from the central bank, by 40 basis points to a historic low of 4 per cent. RBI Governor Shaktikanta Das had said monetary policy transmission to banks’ lending rates has continued to improve.
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