Coronavirus outbreak: US Fed cuts rates by 50 bps, RBI ready to take action

This is the first time in over 11 years that the Fed has cut policy rates by 50 bps or more

In the wake of volatility in the financial markets due to COVID-19 (novel coronavirus), the Reserve Bank of India (RBI) on Tuesday said it was ready to ensure that the markets ran well and confidence was maintained. It is monitoring global and domestic developments.

RBI Governor Shaktikanta Das, in an interview to Bloomberg on Tuesday, said there was a strong reason for coordinated policy action. And the option before the RBI includes a rate cut and supporting the market through liquidity measures, building confidence, and other instruments to deal with emerging challenges.

Also, in a major step to arrest the