Reserve Bank of India Unexpectedly Cuts Interest Rates

The video discusses the severe impact of COVID-19 on the global economy, with over 300,000 deaths and stalled economic activity. Central banks, particularly the Monetary Policy Committee (MPC), are called to action. Recent macroeconomic data highlights the pandemic's damage, prompting an off-cycle MPC meeting. The MPC unanimously decides to reduce the policy repo rate by 40 basis points to 4% and maintain an accommodative monetary stance to support growth and control inflation. The MSF and Bank rates are adjusted accordingly.

What was the impact of COVID-19 on the global economy as mentioned in the text?

What actions did the Monetary Policy Committee (MPC) take in response to the economic situation?

What was the unanimous decision made by the MPC regarding the monetary policy stance?

How did the MPC's decision aim to mitigate the impact of COVID-19?

What was the new policy repo rate set by the MPC?