<h1>RBI Cuts Interest Rates, Extends Loan Moratorium to Boost Economy During COVID-19: Repo Rate Now 4%, GDP Contraction Expected.</h1> The Reserve Bank of India (RBI) has reduced interest rates and extended the loan repayment moratorium to support the economy amid the COVID-19 pandemic. The repo rate was cut by 40 basis points to 4%, and the reverse repo rate to 3.35%. The loan moratorium is extended by three months, allowing banks to convert interest into term loans. Corporate lending limits were increased to 30% of net worth. The RBI forecasts a GDP contraction for FY21 and remains open to further rate cuts. Inflation is expected to remain high initially but may decrease later in the fiscal year.