RBI raises repo rate by 25 bps, eases rupee support

October 29, 2013

Mumbai, Oct 29: The Reserve Bank of India (RBI) raised its policy interest rate for the second time in as many months on Tuesday, warning that inflation is likely to remain elevated for the rest of the fiscal year, and rolled back an emergency measure put in place to support the slumping rupee.

The RBI lifted its policy repo rate by 25 basis points (bps) to 7.75 percent, in line with the expectations of most analysts in a recent Reuters poll, despite the risks to an economy beset by sluggish growth.raghuram_rajan

"Overall WPI (wholesale price index) inflation is expected to remain higher than current levels through most of the remaining part of the year, warranting an appropriate policy response," RBI Governor Raghuram Rajan said in his review.

With the rupee having stabilised, the RBI lowered its Marginal Standing Facility (MSF) rate a further 25 bps to 8.75 percent, which eases liquidity in the banking system and returns the gap between the repo and MSF rates to the usual 100 basis points.

Rajan, a high-profile former chief economist at the International Monetary Fund, took office in early September and stunned markets in his first policy review just weeks later by raising interest rates to combat fierce price pressures dogging Asia's third-largest economy.

Annual food inflation accelerated to 18.4 percent in September, its highest since mid-2010, pushed up by prices of vegetables including onions and stirring public discontent ahead of national elections which must be held by next May.

India's economy grew at 4.4 percent in the June quarter, the slowest since early 2009. The 5 percent growth rate recorded in the last fiscal year through March was the weakest in a decade.

The RBI said it expects the economy to grow at 5 percent in the current fiscal year that ends in March.

The headline wholesale price index (WPI) unexpectedly hit a seven-month high in September of 6.46 percent as food prices surged, while the consumer price index jumped an annual 9.84 percent, spurring expectations for another rate hike.

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Agencies
June 20,2020

New Delhi, Jun 20: After Prime Minister Narendra Modi said there are no foreign incursions into India, China has once again claimed that Galwan valley of Ladakh union territory is located on the Chinese side of the Line of Actual Control (LAC).

In an official statement on the step-by-step account of the Galwan face-off where 20 Indian soldiers were killed, China's foreign ministry spokesperson Zhao Lijian has said the Galwan valley is located on the Chinese side of the LAC in the west section of the China-India boundary.

"For many years, the Chinese border troops have been patrolling and on duty in this region," Zhao said alleging that since April this year, the Indian border troops have unilaterally and continuously built roads, bridges and other facilities at the LAC in the Galwan Valley.

China has lodged representations and protests on multiple occasions but India has gone even further to cross the LAC and make provocations, Zhao said.

By the early morning of May 6, the Indian border troops, who had crossed the LAC by night and trespassed into China's territory, built fortification and barricades, which impeded the patrol of Chinese border troops, Zhao said adding that they deliberately made provocations in an attempt to unilaterally change the status quo of control and management.

The Chinese border troops, he said, were "forced to take necessary measures to respond to the situation on the ground and strengthen management and control in the border areas."

In order to ease the situation, China and India have stayed in close communication through military and diplomatic channels, he said. "In response to the strong demand of the Chinese side, India agreed to withdraw the personnel who crossed the LAC and demolish the facilities, and so they did.

On June 6, the border troops of both countries held a commander-level meeting and reached consensus on easing the situation. The Indian side, he said, promised that they would not cross the estuary of the Galwan river to patrol and build facilities and the two sides would discuss and decide phased withdrawal of troops through the meetings between commanders on the ground.

"Shockingly, on the evening of June 15, India's front-line troops, in violation of the agreement reached at the commander-level meeting, once again crossed the Line of Actual Control for deliberate provocation when the situation in the Galwan Valley was already easing, and even violently attacked the Chinese officers and soldiers who went there for negotiation, thus triggering fierce physical conflicts and causing casualties."

"The adventurous acts of the Indian army have seriously undermined the stability of the border areas, threatened the lives of Chinese personnel, violated the agreements reached between the two countries on the border issue, and breached the basic norms governing international relations," the spokesperson said.

Beijing, he said, hopes that India will work with China, follow faithfully the important consensus reached between the two leaders, abide by the agreements reached between the two governments, and strengthen communication and coordination on properly managing the current situation through diplomatic and military channels, and jointly uphold peace and stability in the border areas.

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News Network
January 30,2020

Mumbai, Jan 30: The Shiv Sena on Thursday endorsed Union home minister Amit Shah's view that alleged inflammatory statements made by Sharjeel Imam, an anti- Citizenship (Amendment) Act (CAA) activist, were dangerous.

No politics should be done on the issue, and such "pest" afflicting the country should be finished off, it said.

Imam was arrested on Tuesday in connection with his speeches at Jamia Millia Islamia University in Delhi and in Aligarh during anti-CAA protests.

He has been booked for sedition, among other offences.

In an editorial published in its mouthpiece `Saamana', the Sena, a former ally of the BJP, said, "We agree with union home minister's comments that Sharjeel Imam's alleged words of separation are more dangerous than that of Kanhaiya Kumar."

Kumar, former student leader from Jawaharlal Nehru University, had been arrested over alleged separatist slogans shouted during a protest on varsity campus.

The Sena, which has formed alliance with the Congress and NCP to come to power in Maharashtra, is often seen walking a tightrope to preserve its credentials as a pro-Hindutva party.

"The union home ministry, while initiating action against Imam, should not indulge in politics and try to finish off this pest that is afflicting our country," the editorial said.

"One must find out why such language of breaking up this country into pieces is being used by the educated youth of this country more and more frequently. Who is spewing such venom into the mind of Sharjeel who did his graduation from IIT-B and now pursuing PhD from JNU?" the Sena asked.

"Even people involved in Elgar Parishad at Pune are facing sedition charges and these people have been known as intellectuals and are well-known personalities," said the party.

"A conspiracy to bring about a conflict between Hindus and Muslims and ensure continuance of anarchy and civil war as in Iraq and Afghanistan exists. The boost for such activities is coming from a 'political laboratory'," the editorial said.

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News Network
April 2,2020

Thiruvananthapuram, Apr 2: The Centre's decision to accept contributions from abroad to PM-CARES fund for fighting COVID-19 has prompted social media users to take potshots at it as Kerala was not allowed to receive foreign aid after the devastating floods in 2018.

Senior Congress leader Sashi Tharoor said accepting relief for coronavirus pandemic does not affect "one's ego", while other reactions varied from taking a dig saying 'Vikas has reached new heights" to asking where is the country's pride.

Government sources have said a decision had been taken to accept contributions from abroad to the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES) to deal with the coronavirus pandemic.

The Narendra Modi government had earlier turned away foreign aid, including a reported Rs 700 crore donation from the UAE, to help Kerala during the floods that devastated the southern state, while "deeply appreciating" the offers from various nations then.

Over 480 people were killed, several had gone missing during the worst floods in a century that also rendered lakhs homeless and dealt a severe blow to the state's economy.

"Flood relief for Kerala hurts ones ego. Pandemic relief doesnt. Go figure! #PMCARES!" tweeted Tharoor, who represents Thiruvananthapuram in Lok Sabha.

Another twiterratti reacted to the Centre's latest move, saying: "Wow.. a nation that built 3,000 crore statue is B3GG!NG now? Sad!"

"Vikas has reached new heights... Where are the proud Modi Bhakts?" another wrote.

"Thanks but no, says India to foreign aid for Kerala", another social media user tweeted, tagging a 2018 news report on MEA Spokesperson saying the government was committed to meeting the requirements for relief and rehabilitation in Kerala through domestic efforts.

"Pandemic is unprecedented, India has taken a decision to accept foreign donations to the PM fund. But....", "5 Trillion begging bowl", "Where did the 'National Pride' go now?" another tweet asked.

The Centre's present decision marks a shift from its earlier position of not accepting foreign donations to deal with domestic crisis.

"In view of the interest expressed to contribute to Government's efforts, as well as keeping in mind the unprecedented nature of the pandemic, contributions to the Trust can be done by individuals and organisations, both in India and abroad," a government source has said.

It said the fund was set up following spontaneous requests from India and abroad for making generous contributions to support the government in its fight against COVID-19.

On Saturday, Modi had announced setting up of the PM CARES fund.

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