Covid-19 is the worst health and economic crisis in the last 100 years with unprecedented negative consequences for output, jobs and well being, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Saturday.
“The pandemic has dented the existing world order, global value chains, labour and capital movements across the globe,” Das said while addressing the 7th SBI Banking and Economics Conclave via video conferencing.
Das said the pandemic, perhaps, represents so far the biggest test of robustness and resilience of “our economic and financial system”.
The RBI Governor said that from February 2019 till the onset of Covid-19 in the country, the Repo rate was cut on a cumulative basis by 135 basis points. The move taken primarily to tackle the slowdown in growth which was visible at that time, he said. Das added that such measures would have positively impacted the economic activity in the country but the coronavirus crisis followed.
“The lagged impact of these measures was about to propel a cyclical turnaround in economic activity when Covid-19 brought with it calamities, miseries, endangering of lives and livelihood of people,” he added.