Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
June 24, Sunday 2018 6:58 AM       

       HEADLINES: B Sujatha Devi Passes Away                                              Teased for dark skin, woman poisons food at family function                                              UP: Infant crushed to death by father                                              Senior Congress leader Danam Nagender resigns                                              UAE says ready to back efforts for peaceful Yemen rebel pullout                                              Musharraf says he has not quit politics                                              Constant bullying of activists unacceptable: HRCP                                              Kohli & Co. depart for Ireland, England tour                                              FIFA WC: Lukaku, Hazard braces help Belgium stun Tunisia 5-2                                              FIFA WC: Vela, Hernandez help Mexico win against S Korea 2-1                                              Kaumudi Facebook
       BUSINESS Next Article: Sensex pulls 332 pts higher ahead of RBI meet, on global cues  
       RBI begins 2-day policy review; industry, govt want rate cut
 
         Posted on :18:56:39 Oct 3, 2017
   
A A
       Last edited on:18:56:39 Oct 3, 2017
         Tags: RBI begins 2-day policy review; industry, gov
 

MUMBAI: The Monetary Policy Committee headed by RBI governor Urjit Patel started two-day deliberations on Tuesday with industry and the government hoping for interest rate cut to spur growth which fell to 3-year low of 5.7 per cent in the June quarter, while experts expect status quo.

The fourth bi-monthly monetary policy statement for 2017 -18, to be released on Wednesday, is being keenly awaited by all stakeholders -- especially the industry which has been demanding for lower interest rates.

Bankers however are of the view that the Reserve Bank of India (RBI) would maintain status quo as inflation has risen.

According to a SBI report, the RBI is likely to maintain status quo on key lending rate in Wednesday's policy review as it is "stuck in a conundrum" of low growth, mild inflation and global uncertainties.

It said that against the background of flexible inflation targeting, the obvious question that arises is choosing between moving towards the 4 per cent inflation target swiftly or just staying within the inflation band of plus/minus 2 per cent.

"We expect the RBI to stay on hold at the upcoming meeting as rising incoming inflation and projections of further acceleration in inflation ahead will mean that there would be limited space for further easing," Morgan Stanley said in the research note.

On the other hand, a top finance ministry official said last week that there is scope for an RBI rate cut at the next policy review as retail inflation continues to be low.

"There is scope for monetary easing because of inflation projections," the official had said, adding that all the government analysis is made on the basis of inflation remaining under 4 per cent in the medium term.

Industry body Assocham has written to the MPC to cut the interest rates at least by 25 basis points, given the challenges being faced by the economy which needs immediate measures for revival of growth.

"At least 50 basis points elbow room can be taken with regard to 3.2 per cent fiscal deficit for the current year and the next financial year," it said.

In its last policy review in August, the RBI reduced the repo rate by 0.25 per cent to 6 per cent, citing reduction in inflation risks.

The rate cut was the first in 10 months and brought policy rates to a near 7-year low.

However, retail inflation rose to a five-month high of 3.36 per cent in August due to costlier vegetables and fruits.

The consumer price index (CPI) based inflation was 2.36 per cent in July.

Other members of the MPC are Deputy Governor in-charge of monetary policy Viral A Acharya and RBI Executive Director Michael D Patra.

Indian Statistical Institute professor Chetan Ghate; Delhi School of Economics Director Pami Dua and IIM-Ahmedabad professor Ravindra H Dholakia are the government nominees of the MPC.

A A
       BUSINESS
Next Article: Sensex pulls 332 pts higher ahead of RBI meet, on global cues
 
 
BUSINESS HEADLINES
WhatsApp updates privacy policy, terms of use ahead of payments service launch  
Infosys stable and on verge of something momentous: Nilekani  
Gold, silver prices fall on weak global cues  
FICCI awarded at X International IT Forum, Russia  
Lenovo India names Pankaj Harjai as Director-Tablets  
Adani Transmission acquires 100% equity in Ghatampur SPV  
Air India set to have 'Maharaja' class seats on international flights  
Sensex gets a buying lift, up 123 pts; RIL at new high  
Aviation Ministry committed to strategic disinvestment of Air India  
Exempted sectors should come under GST: Arvind Subramanian  
Bajaj Finserv offers pre-approved personal loan to customers  
US dollar ends cheaper against rupee  
Pradeep Parameswaran appointed Uber President- India, South Asia  
Google announces training programme for journalists  
Sensex tanks 261 pts as US-China trade spat escalates  
US dollar ends higher against rupee  
WhatsApp Payments to be rolled out soon: here is how it's different from competition  
Ayushman Bharat: Only half the states ready to launch scheme on August 15; UP Bihar & West Bengal not prepared yet  
Audi boss arrested over diesel scandal  
India, US officials to meet soon to discuss concerns of both sides: Prabhu  
Rupee dives to 3-week low at 68.01 on macro-liquidity shocks  
Gold rises on mild demand, silver surges for 8th session  
AFT directs govt to remove anomaly in HRA  
Grand Finale of Smart India Hackathon from June 18-22  
GST refund drive extended till June 16  
 
Should Yoga be made compulsory in all schools?
Yes
 
No
 
No opinion
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy