Monetary Policy: RBI cuts key policy rate to 6.25%
Monetary Policy Committee cut the repo rate by a quarter of a percentage point to 6.25 percent. Even then, the first MPC meeting presided by new governor Shaktikanta Das was keenly watched by policy watchers for various reasons.
The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) made a decision to reduce the key policy rate or the repo rate by 25 bps to 6.25% in the last bimonthly policy review of 2018-19 while changing the policy stance to "neutral" from "calibrated tightening".
Deputy Governor Viral Acharya and another MPC member, Chetan Ghate, voted for status quo in interest rates, while Das and three others voted for a cut in interest rates. However, all the members agreed on changing the policy stance to neutral.
The Reserve Bank of India Thursday projected an economic growth rate of 7.4 per cent for the next fiscal, up from 7.2 per cent estimated for the current fiscal by Central Statistics Office (CSO). As headline inflation is way below target, MPC could have given 50 bps relaxation to industry.
"The 25 bps reduction in repo rate taken together with the shift in RBI's stance from "calibrated tightening" to a "neutral approach", would go a long way in lifting sentiment among businesses", CII President Rakesh Bharti Mittal said.
RBI Governor Shaktikanta Das said, "we are constantly & continuously monitoring the liquidity situation and based on the requirement we will ensure that there is no liquidity scarcity". Inflation estimates have been revised very sharply lower by the central bank, according to a Livemint report. While RBI's mandate is price stability (targeting inflation), the RBI Act also says that it needs to do so "keeping in mind the objective of growth", Das said then to make his point. Finance Minister Piyush Goyal rolled out the government's last budget ahead of this year's national elections, announcing no tax on income up to Rs 5 lakh, a Rs 75,000 crore assured income scheme for small farmers and a mega pension scheme for workers in the unorganised sector.
Related news
-
Oil drops as global economic concerns grip market
Helping to underpin prices are the OPEC-led supply cuts and Washington's sanctions against Venezuelan crude exports. Oil fell on Tuesday after a survey showed euro zone business expansion almost stalled in January.Dem derides Trump claim he prevented NKorea war
It also noted that the Trump administration thinks that Vietnam is a political and economic model that North Korea can emulate. Trump met Kim in Singapore on June 12 in the first summit between a sitting USA president and a North Korean leader.World Cancer Day raises awareness for early detection and research
According to the American Cancer Society, people lose weight at least once when suffering from the disease. Rwanda marked the day yesterday, with keen interest on intensifying the fight against cervical cancer . -
Gov. Northam held 'urgent' meeting with senior staff Sunday evening
Jim Moran, D-Va., a longtime congressman from Northern Virginia, said on "This Week" that he believes Northam should not resign. Ralph Northam's 1984 yearbook was reportedly surfaced by an ex-classmate offended by Northam's recent comments about abortion.White House announces State of the Union guests
Conway says Trump will also meet with guests the White House has invited to sit with first lady Melania Trump during the speech. Trump is set to outline his agenda while facing a new reality: a House chamber controlled by Democrats.Netherlands recognises Guadio as Venezuelan leader after deadline expires
Recently, while in Central America, Francis called for a "just and peaceful" solution to the crisis in Venezuela. The Lima Group is a bloc of regional countries that recognize Juan Guaido as Venezuela's interim president. -
Meghan Markle’s ‘anonymous’ friend identified, according to fans
Both are her father's children from a previous marriage. "After the wedding, she wrote him a letter", the friend continued. I'm telling you I don't want to communicate through the media, and you're asking me to communicate through the media.Solari will take 21 players to Barcelona for El Clasico
Real Madrid have a demanding month ahead of them with matches in LaLiga , the Champions League and the Copa del Rey . Messi suffered knock in Saturday's La Liga clash with Vancia that ended in a 2-2 draw.Pregnant Meghan Markle is reportedly hiring a birthing 'doula'
Yes, Prince Harry and Prince William have a ton of drama between them , and well, it does involve Meghan Markle unfortunately. The TV show host also said that royal advisers should've stopped the former " Suits " actress before she wrote the messages. -
Giants are the latest team to meet with Bryce Harper
Judge played a single game in center field last season - though Harper could be a better fit given his range. But I think it's safe to assume that we're going to spring training with the team that we expect to have".Sixers acquire Tobias Harris in blockbuster trade with Clippers
The guys give Sixers general manager Elton Brand a ton of credit for making such strong moves just 140 days into his tenure as GM. He was the 76ers' main target, but they also get 221cm giant Boban Marjanovic and forward Mike Scott from the LA side.Israel Begins Construction of Barrier on Gaza Border
It accuses Hamas, with whom it has fought three wars since 2008, of seeking to use the protests as cover to carry out violence. Former Mayor of Shiloh, Israel David Rubin weigh in on the effectiveness of border walls.
Top Stories
Critics mock Alexandria Ocasio-Cortez's 'brainless' Green New Deal
Alexandria Ocasio-Cortez of NY , who is calling for a Green New Deal to transform the USA economy to combat climate change. Ocasio-Cortez's comments on the select committee came Thursday during a press conference she and Massachusetts Sen.
Britain’s May to meet European Union leaders on Brexit deal
May raised the prospect of the World Cup returning to Britain for the first time since 1966 during a visit to Northern Ireland . The EU has repeatedly rejected the idea that the legal text of the Withdrawal Agreement could be reopened.
No wall on White House talking points on State of the Union
And she largely avoided the pitfalls of others who delivered similar responses , including Florida Sen. Geraldine Ferraro did the same when she was named America's first female Vice President nominee.
Venezuela slams European Union countries for aligning with U.S.
With nearly no information about how aid will be distributed, the Cucuta crossing from Venezuela appeared to be quiet on Tuesday.
Nantes Submit Demand To Cardiff City For Emiliano Sala Deal
According to BBC Wales, Nantes have given Cardiff a 10-day ultimatum over the first payment of between five and six million euros. A search team found wreckage of the plane on Sunday in the English Channel, but bodies have not been recovered or identified .
Dropping INF Treaty will let U.S
It bans the development and deployment of ground-launched nuclear missiles with ranges of 500 to 5,500 kilometers. "I don't think we're talking about the development of a Cold War".
Super Bowl champion Patriots return home to hero's welcome
The Patriots and Rams managed a combined tally of 16 points, marking the lowest scoring Super Bowl on record. With the Patriots victory over the Los Angeles Rams , the Browns official draft order is now complete.
West Ham v Liverpool: Title-chasers slow up at worst possible moment
Past year we won at Crystal Palace 2-1 with two offensive situations pretty much. Here's how the table looks after tonight's draw between West Ham and Liverpool .
Adam Levine's Super Bowl Tank Looks Like Curtain Pattern
Pink, Rihanna and Cardi B all declined to perform, with the latter two doing so due to their support of footballer Colin Kaepernick.
President Trump Hammers 'Chuckie' Schumer, Dems on Iran
In May 2018, Trump withdrew the US from that accord, which he called a bad deal that would not stop Iran from going nuclear. He later suggested he would reveal those details in his State of the Union address on Tuesday.