Madhya Pradesh CM Shivraj Singh Chouhan tests covid positive

New Delhi, Jul 16: With India's economic growth sputtering, the Reserve Bank of India was expected to maintain a rate-cutting cycle, but an uptick in near-term inflation could give the central bank's Monetary Policy Committee reason to pause for now.

Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.

Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month.

"It's probably too early to administer a demand stimulus. The RBI still has room to cut rates, but we probably want to be more cautious of the timing," said Venkat Pasupuleti, portfolio manager at Dalton Investments.

"Maybe they should wait a quarter to see how things pan out once the lockdown situation is eased further."

Market participants have factored in at least a 25 bps rate cut by the MPC on August 6 while analysts are predicting a total 50-75 bps cuts over the rest of the fiscal year that runs to March 31.

The spike in the retail inflation rate above the RBI's mandated 2%-4% target range is another reason for the central bank to take a breather, analysts say.

Annual retail inflation rose to 6.09% in June, compared to 5.84% in March and sharply above a 5.30% median forecast in a Reuters poll of economists.

Rahul Bajoria, an economist at Barclays, said the spike in both consumer and wholesale prices "could lead to a tempering in enthusiasm for material front-loaded policy support from here on."

Almost all economists however agreed the RBI cannot move away from its accommodative stance or call an end to the rate cutting cycle just yet.

India's economy grew at 3.1% in the March quarter - an eight year low - and some economists have predicted a contraction of more than 20% in the June quarter and a contraction of up to 5% in the fiscal year.

"Even in the event of a pause, we think the RBI and MPC would want to hold out the promise of more cuts," said A. Prasanna, economist with ICICI Securities.

RBI Governor Shaktikanta Das said in a recent speech the need of the hour is to restore confidence, preserve financial stability, revive growth and recover stronger, suggesting inflation concerns are unlikely to deter the downward trajectory for rates too soon.

"The August policy decision would boil down to a judgment call over whether RBI can maintain easy monetary and financial conditions without the aid of a token rate cut," Prasanna said. 

Mumbai, Apr 14: Hours after Prime Minister Narendra Modi announed extension of the coronavirus-enforced lockdown till May 3, a large number of migrant workers who earn daily wages came out on road in Mumbai on Tuesday demanding transport arrangements to go back to their native places.

Bandra in Mumbai right now. Police probing what caused such a large crowd to gather. pic.twitter.com/04H1Mnggd2

— Padmaja joshi (@PadmajaJoshi) April 14, 2020

Daily wage workers have been rendered jobless ever since the lockdown was announced late last month to stem the spread of COVID-19, making their life a constant struggle.

Though authorities and NGOs have made arrangemnets for their food, most of them want to go back to their native places to escape the hardship brought by the sweeping curbs.

Wow. Thousands of ambassadors of peace doing this at #Bandra right now. Well done @OfficeofUT, well done. The world should see this.#Covid_19 #COVIDIOTSpic.twitter.com/SdinaZXm39

— Abhijit Majumder (@abhijitmajumder) April 14, 2020

According to a police official, daily wage earners, numbering around 1,000, assembled at suburban Bandra (West) bus depot near the railway station and squatted on road at around 3 pm.

The daily wage earners, who reside on rent in slums in in the nearby Patel Nagri locality, were demanding arrangement of transport facilities so that they can go back to their native towns and villages.

They originally hail from states like West Bengal and Uttar Pradesh.

Thousands of migrants gather at Mumbai's #Bandra railway station and protested. All are migrant workers, specially from Bihar-Bangal and they wanted to go home. They had hoped trains will start today. The police is investigating the matter and says crowd has been dispersed now. pic.twitter.com/NMHfv0CEpj

— Shivangi Thakur (@thakur_shivangi) April 14, 2020

One of the labourers, who did not reveal his name, said, NGOs and local residents are providing food to migrant workers, but they want to go back to their native states during the lockdown which has badly affected their source of livelihood.

"Now, we dont want food, we want to go back to our native place, we are not happy with the announcement (extending the lockdown)," he said, looking dejected.

Asadullah Sheikh, who hails from from Malda in West Bengal, said, We have already spent our savings during the first phase of the lockdown. We have nothing to eat now, we just want to go back at our native place, the government should made arrangements for us.

This happened in bandra just minutes back ! This can be potentially dangerous. Mumbai anyways is a hotspot ! What is the @MumbaiPolice and @OfficeofUT doing ???? Did @uddhavthackeray not provide food and shelter to such migrants ? #mumbai #UddhavThackeray #Lockdown2 pic.twitter.com/AeSuqbwhyN

— Megha Prasad (@MeghaSPrasad) April 14, 2020

Another labourer, Abdul Kayyun, said I am in Mumbai for last many years but have never seen such a situation. The government should start trains to shift us from here to our native place."

Heavy police deployment was made at the protest site to tackle any untoward incident.

Personnel from other police stations were called at the spot to maintain order, the official addd.

Thiruvananthapuram, Mar 23: Amid a spurt in coronavirus cases, Kerala chief minister Pinarayi Vijayan has asked the Centre to give the states authority to give clearances for manufacturing masks, gloves and sanitisers.

In a letter addressed to prime minister Narendra Modi, Vijayan said during the crisis, masks and sanitisers are needed in large numbers.

"As an interim, states must be given authority to give clearances of manufacturing of items related to medical devices, sanitisers, chemicals, etc. which are needed for fighting Covid-19," Vijayan said in the letter.

He also sought permission for the state home department to use drones for the relevant applications related to Covid-19.

"In China and elsewhere in the world, drones have been used extensively in minimising human contact, disinfection, etc. Unfortunately, with the current laws pertaining to the use of drones, none of these is possible in India," the chief minister said.

He also sought permission to access and use facilities available with all central institutions and research labs operating in the state.

The chief minister shared the letter on his Twitter handle.

With 15 new positive cases of Covid-19, the total number of infected persons in Kerala had gone up to 67, including the three who were discharged after recovery last month.