Setting the stage for a post-covid-19 economic revival requires both monetary and fiscal policy action. Reserve Bank of India (RBI) has plugged gaps left by its last announcements.
Now it’s time for the government to act. On Friday, RBI delivered a second liquidity package in less than a month to help money reach vulnerable smaller businesses and help the financial sector stay stable amid the economic disruption caused by the covid-19 outbreak.
RBI Governor Shaktikanta Das unveiled a slew of measures, including a ₹50,000 crore dose of extra funding to be done by banks and a quarter-percentage-point cut in its reverse repo rate, which is now down to 3.75%.