RBI Slashes Repo Rate by 25 Basis Points, Changes Stance to 'Neutral'
RBI Slashes Repo Rate by 25 Basis Points, Changes Stance to 'Neutral'
RBI Policy: MPC Cuts Repo Rate by 25 Basis Points to 6.25%
08 February, 2019, 09:43
The surprise move also came after calls from a top adviser of Prime Minister Narendra Modi for rate cuts to fire up the economy.
The ruling Bharatiya Janata Party (BJP) is already in an election mode. In its budget on February 1, the government doled out cash to farmers and tax cuts to middle-class families, at the cost of a wider fiscal deficit and larger borrowing.
"The MPC also made a decision to change the monetary policy stance from calibrated tightening to neutral", RBI said.
"Must change from calibrated tightening to neutral, because risks are bi-directional", she told CNBC-TV18 but added that, "February would be too early to cut".
Besides cutting rates, the governor also made it easier for banks to lend to top-rated finance companies.
"Pronab Sen, former principal adviser of Planning Commission, also believes there is a compelling case for a rate cut now".
This was the first meeting of the monetary policy committee (MPC) under Shaktikanta Das who took over as the RBI governor in December after the sudden exit of Urjit Patel over differences with the Modi government. As headline inflation is way below target, MPC could have given 50 bps relaxation to industry. The global investment bank expects H1FY20 inflation at 3.8 percent compared to RBI's forecast of 3.3 percent.
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The RBI revised the projection for Consumer Price Index inflation downward to 2.8% in the fourth quarter of 2018-'19 financial year.Retail inflation declined from 3.4% in October 2019 to 2.2% in December, which the RBI said was the lowest in the last 18 months. The pace has steadily dropped since June's 4.92 percent. The next meeting of the MPC is scheduled from April 2 to 4.
The MPC also trimmed its economic growth forecast, to 7.2-7.4 percent during April-September, from its previous 7.5 percent estimate.
The central bank pegged the growth in Gross Domestic Product at 7.4% in 2019-'20.
The committee voted 4:2 to pare the repo rate by 25 basis points to 6.25 percent.
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.
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".
Patel's exit prompted some to fret the RBI's independence was under threat, but some economists argued that Thursday's decision should not be read as a surrender to pressure.
As many as 1 out of every 20 children with measles will get pneumonia, which can also be deadly, the agency reports. By 29th of January, only one case of this disease was confirmed across the Columbia River in Portland, Oregon .
Some areas of drizzle are possible today, but a much better chance for rain comes late tonight and throughout the today Monday. Impacts to travel expected to increase for commuters on Interstate 80, Highways 287 and 789 this afternoon through Wednesday.
In gasoline, the authority reported a build of 500,000 barrels, with daily production at a little less than 9.9 million barrels. A stronger dollar makes greenback-denominated commodities more expensive for holders of other currencies.
The Clippers are planning to pursue several All-NBA-caliber players, including Toronto Raptors forward Kawhi Leonard . Harris will move to the Wells Fargo Center as the centerpiece of a six-player, four-draft pick trade.
Sala and his pilot David Ibbotson have been missing since shortly after their plane took off from France on January 21. Cardiff will honor the deal but have been reluctant to make a payment until they know " all the facts ".
The Northwest cases are among three ongoing measles outbreaks in the US that sickened 79 people in January, according to the CDC. As measles cases multiply in the Vancouver-Portland region, health officials emphasize the importance of vaccinations.
Mr Trump claimed in December that the group had been defeated, and reports suggested he wanted U.S. soldiers home within 30 days. His comments come amid renewed efforts in both the House and Senate to block USA support to the Saudi-led coalition.
India will be buoyed following their 4-1 win in the recently-concluded ODI series but history doesn't favour the Asian giants. Dinesh Karthik is also expected to prove his mettle in order to retain his place in the World Cup squad.
Just recently , the social networking app was criticized for paying minors to access their phone data, the Deseret News reported. As of Tuesday, the ability to delete messages from one's chat history will be rolling out around the world on iOS and Android .
The New Year's Eve dinner is considered an occasion for Chinese families to gather for the annual "reunion dinner". Qian's hometown, Suzhou in the Southern China , uses many traditional Chinese New Year customs from the region.
She said the total damage bill was likely to cost "hundreds of millions of dollars because of the scale of it" in a long recovery. And Queensland environment minister Leeanne Enoch has even warned locals to watch out for snakes, who are very good swimmers.
Korean boy band BTS to appear at Grammy Awards
The 2019 Grammy Awards will be held at the Staples Center in Los Angeles and the show will air on February 10 at 8 p.m. BTS , also known as the Bangtan Boys, have become one of the few K-pop stars to gain a foothold on the U.S.
Marc Gasol headed to Raptors as trade deadline heats up
Memphis let Zach Randolph and Tony Allen leave in 2017 after the franchise's seventh straight postseason appearance. Memphis also reportedly traded JaMychal Green and Garrett Temple to the Los Angeles Clippers on Thursday.
Democrat Schiff draws Trump ire with House intel probes
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Trail Blazers acquire Rodney Hood from Cleveland
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Pope Francis Delivers First Papal Mass On Arabian Peninsula
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What the Boston Celtics could offer for Anthony Davis
Unlike ripping off a band-aid, this decision will shape the future of the New Orleans Pelicans franchise for the next decade. I guess we'll just have to see what, if anything, Davis, Rich Paul and Klutch Sports have left up their sleeve.
Trump Sends Out Another Tweet on Border Wall
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