In the last emergency MPC meet which was preponed to last week of March instead of the scheduled April 3 meet announced a steep 75 bps cut to the lowest rate. All of the six members voted in favour a cut with 2 members favouring a cut of 50 bps including Chetan Ghate and Pami Dua. One basis point is one hundredth of a percentage point.
In the comments of the MPC members concerns over the uncertainty due to Covid 19 have been reflected. And further it stresses on maintaining financial stability as well as could take any unconventional or conventional route to mitigate the economic fall out due to covid 19.
Deputy governor of RBI says the coronavirus pandemic has taken a danse macabre is taking a catastrophic toll on human lives which has resulted in economic disruptions and dislocations and thus monetary policy needs to assume anavant garde role.
"The outlook is now heavily contingent upon the intensity, spread and duration of the pandemic. There is a rising probability that large parts of the global economy will slip into recession," the MPC document said.