RBI’s Monetary Policy Committee has kept Repo Rate unchanged at 4% amid rising inflationary pressure and a grim economic outlook.Here are the highlights and implications of the Credit Policy.
The government on Friday evening steeply revised upwards its 2020-21 borrowing programme by 53.85% to Rs 12 lakh crore. It was earlier estimated to be Rs 7.8 lakh crore, indicating that the Centre is giving shape to an imminent and sizeable fiscal package to arrest the COVID-19 related slowdown.
The above revision in borrowings has been necessitated on account of the COVID-19 pandemic.
Here is our take on the revised borrowings and what RBI can do next…