The Reserve Bank of India (RBI) on Monday took a number of measures to ramp up liquidity in the economy, spooked by the coronavirus, but dashed expectations of a rate cut at its hurriedly called press conference in the afternoon even as central banks across the world announced a string of co-ordinated actions ranging from policy rate cuts to accelerated dollar swaps and purchases of risky assets.

The apex bank on Monday undertook a $2-billion sell/buy (swap) auction and said it would conduct another one for the same amount on March 23.

Besides, the central bank said it would continue to conduct long-term repo operations (LTROs) of up to Rs 1 lakh crore as and when the market needed it.

The RBI has already conducted four rounds of LTROs since February 14.

Expectations have been swirling over the RBI going for a rate cut to fight the prolonged slowdown and the adverse impact of the coronavirus, especially after its peers elsewhere were furiously following an easy monetary policy to jack up growth.

Market observers’ hopes sprinted on Monday when the central bank called a press conference at a short notice. Given the mayhem in the markets, observers were almost certain of a rate cut announcement.

RBI governor Shaktikanta Das did not announce a rate cut on Monday. However, he did not rule out such a move at the next MPC meet, which concludes on April 2.

Pointing out that the decision to alter the repo rate is with the monetary policy committee (MPC) of the apex bank, Das said the RBI has several tools at its disposal and that it stands ready to take all necessary measures to ensure that the adverse effects of the coronavirus on the economy are mitigated. However, he indicated the central bank will not take any knee-jerk reaction.

“It is important to ensure that policy reactions are carefully considered and calibrated to assuage sentiment and instill confidence,” he added.