India slashes rates to decade-low level to ease coronavirus impact

Surprise move comes with three-month nationwide loan moratorium

Reserve Bank of India Gov. Shaktikanta Das has stepped in to reduce the economic fallout from the COVID-19 pandemic. © Reuters

KIRAN SHARMA, Nikkei staff writer

March 27, 2020 14:58 JST

Updated on March 27, 2020 18:16 JST

NEW DELHI -- The Reserve Bank of India on Friday cut the benchmark interest rates by 75 basis points to 4.40% in a surprise move that comes amid concerns over economic fallout from the global outbreak of COVID-19.

According to historical data since 2003 provided by RBI, the lowest interest rate was 4.75% from April 2009 to March 2010, just after the global financial crisis. The central bank not only cut rates but also announced a three-month loan moratorium, bringing relief to borrowers with home and car loans, among others.