This is a preemptive reduction in the policy rate to support market confidence and to defend against the potential spillovers associated with the mentioned external factors. 1/6  BIS central bankers' speeches  Strong external position We have hefty Gross international Reserves (GIR), $ billion as of end-January 2020.
Throughout the nineteenth century and in the early decades of the twentieth, bank runs often helped to precipitate general financial panics that shut down large parts of the financial system and constricted economic activity. Bank runs, by extinguishing deposits, also tended to sharply reduce the nation’s money supply. And they sometimes wreaked considerable hardship on the depositors themselves.