New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the world is on the verge of a Great recession due to the corona virus epidemic. The world is expected to suffer $ 9 trillion due to Covid-19 disease, which is comparable to the economy of many developed countries. Global business is projected to decline by 13 to 32% in the year 2020.
The RBI has said that exports declined by 34.6% in March, much higher than the global financial crisis of 2008-09. RBI says that we are watching the economy of the whole world and the situation in India is better than others.
The RBI cuts the reverse repo rate to increase liquidity in the market. The reverse repo rate is the rate at which banks receive interest on the money deposited in the RBI. Whenever there is too much cash in the market, RBI increases the reverse repo rate, so that the bank deposits its money with it to earn more interest. In contrast, when the cash flow in the market shows a decrease, the RBI reduces the reverse repo rate.
