RBI maintains status quo; cuts growth forecast to 6.7% in FY18

Agencies
October 4, 2017

Mumbai, Oct 4: The Reserve Bank today kept interest rate unchanged as was widely expected in view of upward trend in inflation even as it cut the growth forecast to 6.7 per cent for the current fiscal.

Consequently, the repo rate, at which it lends to banks, will stand at 6 per cent.

The reverse repo, at which RBI borrows from banks will continue to be at 5.75 per cent, it said at the fourth bi-monthly policy review.

In its last review in August it had slashed the benchmark lending rate by 0.25 percentage points to 6 per cent, the lowest in 6 years.

"The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth," RBI said in its fourth policy review of 2017-18.

The six-member monetary policy committee voted 5:1 for the decision, with only Ravindra Dholakia voting for a 0.25 per cent reduction in rates.

The Reserve Bank of India (RBI) said that after a record low in June, inflation is trending up and estimated the headline number to touch 4.6 per cent by the March quarter.

"The MPC (Monetary Policy Committee) decided to keep the policy stance neutral and monitor incoming data closely. The MPC remains committed to keeping headline inflation close to 4 per cent on a durable basis," it said.

On growth, it cut its 2017-18 forecast by gross value added (GVA) basis to 6.7 per cent from 7.3 per cent earlier.

"The loss of momentum in Q1 of 2017-18 and the first advance estimates of kharif foodgrains production are early setbacks that impart a downside to the outlook. The implementation of the GST so far also appears to have had an adverse impact, rendering prospects for the manufacturing sector uncertain in the short-term," RBI said.

The MPC said structural reforms introduced in the recent period will likely be growth augmenting over the medium-to long-term by improving the business environment, enhancing transparency and increasing formalisation of the economy.

Markets were expecting the Monetary Policy Committee to vote for a status quo on the rates at the policy announcement. They also felt that with inflation rising, the RBI is at the end of its rate cutting cycle and may cut it once at best during the remainder of the fiscal.

The review comes amid a heightened fears of a slowdown in growth due to various factors like the demonetisation exercise and the introduction of the indirect taxation reform GST and a shrill call for fiscal boosters from a varied section of economists.

The GDP expansion slowed down for the sixth straight quarter to 5.7 per cent which is a three year low under the new series of computation for the June quarter. However, data released yesterday said the core sector growth came at a 5- month high of 4.9 per cent for August, up from 2.9 per cent for July.

The government has been working on a plan to push up growth, but has not announced any move yet. It cut the excise duty on fuels by Rs 2 in order to minimise the impact of increasing global fuel prices on domestic consumers, a move which heightens the risk of a fiscal slippage.

Breaching the fiscal deficit is also seen as stoking inflation, the Reserve Banks primary objective. The RBI is mandated to keep the headline inflation, which accelerated to 3.36 per cent for August, in the 4-6 per cent band.

Some analysts have been saying inflation has been off the lows and will be pushing up in the second half of the fiscal.

The central bank said it is imperative to reinvigorate investment activity which, in turn, would revive the demand for bank credit by industry as existing capacities get utilised and the requirements of new capacity open up to be financed.

"Recapitalising public sector banks adequately will ensure that credit flows to the productive sectors are not impeded and growth impulses not restrained," it said.

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Agencies
January 15,2020

New Delhi, Jan 15: A Delhi court on Wednesday granted bail to Bhim Army chief Chandrashekhar Azad in connection with the Daryaganj violence case.

The court has ordered him not to hold any protest in Delhi till February 16th.

While hearing the case, the Judge had asked Azad's counsel to read out some of his social media posts.

Advocate Mehmood Pracha, representing Azad, had on Tuesday said that the petitioner was sent to jail without any evidence in connection with anti-CAA protests in Delhi's Darya Ganj area last year.

"I think the court's comments should become a precedent for the country. The Public Prosecutor at the behest of police tried to make this a communal issue. We told the court that the government has a problem with Azad because he made the CAA-NPR-NRC an issue for everyone. 
The Court also sought evidence," Pracha told ANI after Delhi's Tis Hazari court deferred the bail plea of Azad till today.

On Wednesday, the court pulled up the Delhi Police for failing to show any evidence against Azad.

Azad was arrested on December 21 last year after he led a march from Jama Masjid against the Citizenship (Amendment) Act. He was sent to judicial custody till January 18 at Tihar jail.

The Bhim Army chief was charged with rioting, unlawful assembly and inciting the mob to indulge in violence after vandalism in Delhi's Daryaganj area.

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News Network
January 15,2020

Srinagar, Jan 15: The Jammu and Kashmir administration on Tuesday evening allowed mobile Internet in parts of Jammu region and broadband in establishments providing essential services, days after the Supreme Court ordered a review of the curbs imposed in the Union Territory.

The order comes into effect from January 15 and shall remain in force for seven days, a government communication said.

In a three-page order, the administration asked Internet service providers to offer broadband facility (with Mac binding) to all institutions dealing with essential services such as hospitals, banks and government offices.

In order to facilitate tourism, the broadband Internet services would be provided to hotels and tour and travel establishments, the order said.

Mac Binding essentially means to enforce a client machine to work from a particular Internet Protocol address.

"Prior to giving such facility, the service providers have been asked to install necessary firewalls and carry out white-listing of sites that would enable government websites and website dealing with essential services like e-banking," the order said.

However, all social media sites remain out of bounds. "There shall be complete restrictions on social media applications allowing peer-to-peer communication and virtual private network applications for the time being," the order said.

The institutions and government offices that are being provided Internet access shall be responsible to prevent misuse, according to the order.

It said the 2G mobile connectivity on post-paid mobiles for accessing white-listed websites including e-banking will be allowed in districts of Jammu, Samba, Kathua, Udhampur and Reasi -- all in the Jammu region.

The order said that the police has brought material relating to the terror modules operating in Jammu and Kashmir including handlers from across the border who are attempting to aid and incite people by transmission of fake news and targeted messages through use of Internet.

The relaxation came days after the Supreme Court said access to the Internet is a fundamental right under Article 19 of the Constitution.

The SC verdict had come on Friday on a batch of pleas challenging the curbs imposed in Jammu and Kashmir after the Centre's abrogation of provisions of Article 370 on August 5 last year.

The court had also asked the Jammu and Kashmir administration to review within a week all orders imposing curbs in the Union Territory.

It had asked the J-K administration to restore Internet services in institutions such as hospitals and educational places providing essential services.

The J-K administration's Tuesday communication said that in view of the Supreme Court directions, the situation has been reviewed and Internet has been opened whereever it was possible keeping in view the security consideration.

In Kashmir, 400 additional Internet kiosks will be established, besides the 900 terminals which are already operational in the Valley.

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Agencies
July 2,2020

Moscow, Jul 2: Russian voters approved changes to the constitution that will allow President Vladimir Putin to hold power until 2036, but the weeklong plebiscite that concluded Wednesday was tarnished by widespread reports of pressure on voters and other irregularities.

With most of the nation's polls closed and 20% of precincts counted, 72% voted for the constitutional amendments, according to election officials.

For the first time in Russia, polls were kept open for a week to bolster turnout without increasing crowds casting ballots amid the coronavirus pandemic a provision that Kremlin critics denounced as an extra tool to manipulate the outcome.

A massive propaganda campaign and the opposition's failure to mount a coordinated challenge helped Putin get the result he wanted, but the plebiscite could end up eroding his position because of the unconventional methods used to boost participation and the dubious legal basis for the balloting.

By the time polls closed in Moscow and most other parts of Western Russia, the overall turnout was at 65%, according to election officials. In some regions, almost 90% of eligible voters cast ballots.

On Russia's easternmost Chukchi Peninsula, nine hours ahead of Moscow, officials quickly announced full preliminary results showing 80% of voters supported the amendments, and in other parts of the Far East, they said over 70% of voters backed the changes.

Kremlin critics and independent election observers questioned the turnout figures.

We look at neighboring regions, and anomalies are obvious there are regions where the turnout is artificially (boosted), there are regions where it is more or less real, Grigory Melkonyants, co-chair of the independent election monitoring group Golos, told The Associated Press.

Putin voted at a Moscow polling station, dutifully showing his passport to the election worker. His face was uncovered, unlike most of the other voters who were offered free masks at the entrance.

The vote completes a convoluted saga that began in January, when Putin first proposed the constitutional changes.

He offered to broaden the powers of parliament and redistribute authority among the branches of government, stoking speculation he might seek to become parliamentary speaker or chairman of the State Council when his presidential term ends in 2024.

His intentions became clear only hours before a vote in parliament, when legislator Valentina Tereshkova, a Soviet-era cosmonaut who was the first woman in space in 1963, proposed letting him run two more times.

The amendments, which also emphasize the primacy of Russian law over international norms, outlaw same-sex marriages and mention a belief in God as a core value, were quickly passed by the Kremlin-controlled legislature.

Putin, who has been in power for more than two decades longer than any other Kremlin leader since Soviet dictator Josef Stalin said he would decide later whether to run again in 2024.

He argued that resetting the term count was necessary to keep his lieutenants focused on their work instead of darting their eyes in search for possible successors.

Analyst Gleb Pavlovsky, a former Kremlin political consultant, said Putin's push to hold the vote despite the fact that Russia has thousands of new coronavirus infections each day reflected his potential vulnerabilities.

Putin lacks confidence in his inner circle and he's worried about the future, Pavlovsky said.

He wants an irrefutable proof of public support.

Even though the parliament's approval was enough to make it law, the 67-year-old Russian president put his constitutional plan to voters to showcase his broad support and add a democratic veneer to the changes.

But then the coronavirus pandemic engulfed Russia, forcing him to postpone the April 22 plebiscite.

The delay made Putin's campaign blitz lose momentum and left his constitutional reform plan hanging as the damage from the virus mounted and public discontent grew.

Plummeting incomes and rising unemployment during the outbreak have dented his approval ratings, which sank to 59%, the lowest level since he came to power, according to the Levada Center, Russia's top independent pollster.

Moscow-based political analyst Ekaterina Schulmann said the Kremlin had faced a difficult dilemma: Holding the vote sooner would have brought accusations of jeopardizing public health for political ends, while delaying it raised the risks of defeat.

Holding it in the autumn would have been too risky, she said.

In Moscow, several activists briefly lay on Red Square, forming the number 2036 with their bodies in protest before police stopped them.

Some others in Moscow and St. Petersburg staged one-person pickets and police didn't intervene.

Several hundred opposition supporters rallied in central Moscow to protest the changes, defying a ban on public gatherings imposed for the coronavirus outbreak. Police didn't intervene and even handed masks to the participants.

Authorities mounted a sweeping effort to persuade teachers, doctors, workers at public sector enterprises and others who are paid by the state to cast ballots. Reports surfaced from across the vast country of managers coercing people to vote.

The Kremlin has used other tactics to boost turnout and support for the amendments.

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