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RBI cuts repo rate by 0.25% to bring it to 5.15%, reverse repo rate at 4.9%; fifth cut this year

The Reserve Bank of India cut its repo rate by 25 basis points to 5.15 percent, the fifth cut this year, in a bid to boost the flow of credit and reverse economic slowdown.

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RBI Governor Shaktikanta

[vc_row][vc_column][vc_column_text]The Reserve Bank of India (RBI) today – Friday, Oct 4 – cut its repo rate by 25 basis points to 5.15 percent, the fifth time this year, in a bid to boost the flow of credit and reverse economic slowdown. [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1570179377756{border-top-width: 10px !important;border-right-width: 10px !important;border-bottom-width: 10px !important;border-left-width: 10px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;background-color: #b2b2b2 !important;border-radius: 10px !important;}”]Repo rate is the rate of interest at which the RBI lends money to commercial banks, reverse repo rate is the rate at which it borrows. 

One basis point is a hundredth of a percentage point and 25 basis points means 0.25%.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The central bank also decided to continue with an accommodative stance “as long as it is necessary” to revive growth, while ensuring inflation remains within the target.

All members of the six-member Monetary Policy Committee (MPC), that met on October 4 to review interest rates, voted to reduce the policy rate, the RBI said.

With this cut, the repo rate, which serves as the MPC’s policy rate, has been reduced for the fifth consecutive time this year, the total coming to 135 basis points. Lower interest rates are expected to make home and vehicle loans cheaper. However, banks have passed on only a fraction of these cuts so far, said reports.

The MPC meeting comes in the backdrop of RBI’s mandate to banks to link their loan products to an external benchmark, like repo rate, for faster transmission of reduction in policy rates to borrowers, from October 1.

The MPC also sharply reduced its growth forecast for the fiscal year 2019-2020 to 6.1% from 6.9% earlier. The committee noted that risks to growth have emerged due to weak domestic demand and sagging export prospects on account of continuing trade tensions. MPC on the other hand retained its consumer price inflation forecast for the second half of the fiscal year 2019-202 as expected at 3.5%-3.7%

The RBI said that while these measures are likely to help strengthen private consumption and spur private investment activity, the continuing slowdown warrants intensified efforts to restore the growth momentum.

The Indian economy grew at the pace of just 5 percent in the June-ended quarter, it’s slowest since 2013. This triggered a slew of measures by the government and the central bank in past few months, including a corporate tax rate cut and setting up loan melas to encourage fresh investments.

Inflation has remained well within the MPC’s target of 4 percent for the past 13 months, giving room for the central bank to respond with policy rate cuts.

“With inflation expected to remain below target in the remaining period of 2019-20 and first quarter of 2020-21, there is policy space to address these growth concerns by reinvigorating domestic demand within the flexible inflation targeting mandate,” RBI said.

The MPC was largely expected to vote in the favour of a rate cut and back government’s efforts to address the current economic slowdown.

The MPC is next scheduled to meet during December 3-5, 2019.

The announcements from the six-member Monetary Policy Committee (MPC) came after a three-day meeting. The rate cut comes at a time when the Indian economy is facing its worst slowdown since the dip in economic activity following the global financial crisis of 2008-09.[/vc_column_text][/vc_column][/vc_row]

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Priyanka Gandhi meets Nitin Gadkari over Kerala road projects, light moments mark discussion

Priyanka Gandhi met Nitin Gadkari in Parliament to discuss road projects in Kerala, with the meeting marked by humour, political remarks and an informal food tasting.

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Priyanka Gandhi meets Nitin Gadkari (1)

Congress MP Priyanka Gandhi Vadra on Thursday met Union Road Transport and Highways Minister Nitin Gadkari at his office in Parliament to raise issues related to road infrastructure projects passing through Kerala. The meeting combined formal discussions with lighter moments, including a humorous exchange and an unexpected food tasting session.

Kerala road projects discussed at Parliament meeting

Priyanka Gandhi, the Member of Parliament from Wayanad in Kerala, discussed six road projects that pass through the state. During the interaction, Nitin Gadkari clarified that some of these projects fall under the jurisdiction of the Kerala government and therefore cannot be directly handled by the Centre. However, he assured the Congress leader that the remaining proposals would be examined.

According to those present, the discussion remained cordial, with both sides acknowledging administrative limitations while exploring possible ways forward.

‘Bhai ka kaam ho gaya’ remark draws laughter

The meeting also saw a light-hearted moment when Gadkari referred to a recent interaction with Rahul Gandhi, the Leader of the Opposition in the Lok Sabha. He said Rahul Gandhi had met him earlier regarding road-related concerns in Rae Bareli.

In a humorous remark, Gadkari said that if work was done for the brother but not for the sister, it could lead to complaints. The comment prompted laughter from Priyanka Gandhi and others present in the room.

Congress confident of future action in Kerala

During the conversation, Priyanka Gandhi expressed confidence about the Congress party’s prospects in the upcoming Kerala Assembly elections. She indicated that proposals currently under the purview of the Left Front government in the state would be taken forward once Congress comes to power.

Her remarks reflected political confidence while keeping the focus on infrastructure needs in Kerala.

A homemade dish adds informal touch

Apart from policy discussions, the meeting included an informal culinary moment. Nitin Gadkari had prepared a rice-based dish after learning the recipe from online videos. Visitors to his office were offered rice balls served with chutney.

Gadkari encouraged Priyanka Gandhi to taste the dish, and she, along with Congress leader Deepender Singh Hooda, was seen sampling the food while continuing their conversation with the minister.

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AAP dominates Punjab zila parishad polls, leads in most panchayat samiti zones

AAP has won 201 out of 317 declared zila parishad zones in Punjab so far and is leading in a majority of panchayat samiti seats, with counting still underway.

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Punjab Zila Parishad Polls

The ruling Aam Aadmi Party (AAP) has recorded a strong performance in the Punjab zila parishad elections and is leading in the majority of panchayat samiti zones, as per results declared so far on Thursday. The counting process is still underway and complete results are awaited, officials said.

Polling for the rural local bodies was held on December 14 to elect representatives across 347 zones of 22 zila parishads and 2,838 zones of 153 panchayat samitis in the state.

AAP secures clear edge in zila parishads

According to the available results, outcomes have been declared for 317 zila parishad zones so far. Of these, the AAP has won 201 zones, placing it well ahead of other parties.

The Congress emerged second with victories in 60 zones, followed by the Shiromani Akali Dal (SAD) with 39 zones. The BJP won four zones, the BSP secured three, while independents claimed 10 zones.

District-wise data shows that the AAP won 22 zones in Hoshiarpur, 19 each in Amritsar and Patiala, 17 each in Tarn Taran and Gurdaspur, and 15 zones in Sangrur. The Congress registered its best performances in Gurdaspur and Ludhiana with eight zones each, followed by Jalandhar with seven zones. The SAD performed strongly in Bathinda with 13 zones, while the BJP managed to win four zones in Pathankot.

AAP leads in panchayat samiti results

In the panchayat samiti elections, trends declared so far indicate that the AAP is leading in a majority of zones. However, officials clarified that counting is ongoing and the final picture will be clear only after all ballot papers are tallied.

Kejriwal, Mann reject opposition allegations

Reacting to the trends, AAP supremo Arvind Kejriwal said the party’s performance reflected strong rural support for the Bhagwant Mann government’s work. Addressing the media in Mohali along with Chief Minister Bhagwant Mann, Kejriwal dismissed allegations of irregularities raised by opposition parties.

He said the elections were conducted in a fair and free manner and claimed that the results so far showed a clear wave in favour of the AAP in rural Punjab. Kejriwal stated that nearly 70 per cent of the zila parishad and panchayat samiti seats had gone in favour of the party.

Congress, SAD question poll conduct

The Congress and the Shiromani Akali Dal, however, accused the ruling party of misusing official machinery. Punjab Congress chief Amrinder Singh Raja Warring alleged that the AAP had “stolen” the rural mandate and claimed that the results did not reflect genuine public support.

Opposition parties had earlier also accused the AAP government of high-handedness during the polling process, allegations that the ruling party has strongly denied.

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Vijay signals political push with TVK rally as last film Jana Nayagan promotion aligns with 2026 polls

Vijay combined a major TVK rally with the promotion of his final film Jana Nayagan, signalling a carefully planned transition from cinema to politics ahead of the 2026 Tamil Nadu polls.

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Actor vijay

Tamil actor-turned-politician Vijay marked a significant moment in his political journey on December 18, combining a major public rally of his party Tamilaga Vettri Kazhagam (TVK) with a key promotional event for his final film Jana Nayagan. The twin developments underline his calibrated shift from cinema to full-time politics, with the 2026 Tamil Nadu Assembly elections clearly in focus.

Vijay addressed a large gathering near the Vijayamangalam toll plaza in Erode, marking his first major open rally after the Karur incident. Around 25,000 people were present at the venue, reflecting the sustained interest around his political entry and the mobilisation capacity of his fan base, now being encouraged to transition into party supporters.

Parallelly, the second single from Jana Nayagan was released online in the evening. The film, slated to hit theatres on January 9, has been announced as Vijay’s last cinematic outing before dedicating himself entirely to politics.

How Jana Nayagan fits into Vijay’s political strategy

Jana Nayagan, directed by H Vinoth, is positioned as more than just a farewell project to Vijay’s acting career. From its title, which translates to “People’s Leader”, to its narrative and music by Anirudh Ravichander, the film has been designed to mirror themes that Vijay has begun emphasising in his political speeches — governance, accountability and moral authority.

The actor has repeatedly projected himself in rallies as a leader who wants to serve the people of Tamil Nadu and raise issues affecting marginalised sections. The film’s tone appears to align with this image, aiming to present a restrained and serious persona without alienating his long-time fans.

By declaring Jana Nayagan as his final film, Vijay has attempted a gradual emotional transition for his supporters, with TVK hoping that this loyalty will convert into organisational strength and votes in the upcoming elections.

Analysts divided on electoral impact

Political analysts, however, remain cautious about the effectiveness of this approach. One analyst noted that while Vijay is clearly attempting to convert his massive fan following into party cadres, not every fan can realistically take on a political role. Another analyst pointed out that the film alone is unlikely to fetch votes, though messaging around issues such as corruption or dynastic politics could help Vijay gain some traction over time.

The analysts also flagged that Vijay is entering a crowded and competitive political space and that the impact of recent controversies has added to the challenges ahead. According to them, his current strategy appears to be aimed not only at 2026 but at building a longer-term political position.

Invoking legacy and symbolism

A recurring element in Vijay’s rallies has been his admiration for former Tamil Nadu Chief Minister and actor M G Ramachandran. The second single from Jana Nayagan, titled Oru Pere Varalaaru, reinforces this aspiration, with lyrics emphasising the idea of a name that makes history and the power of the people’s voice.

While invoking MGR remains a common political trope in Tamil Nadu, analysts underline that his journey remains unmatched. They stress that sustained electoral participation and organisational strength, rather than crowd sizes at rallies, will determine Vijay’s political future.

For now, Vijay’s rally in Erode and the simultaneous promotion of Jana Nayagan highlight a carefully timed blend of cinema and politics, as he prepares to test his popularity beyond the silver screen.

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