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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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Delhi Elections: Arvind Kejriwal-led AAP delegation meets EC over voter deletion issue, submits proof

The former Deputy Chief Minister further claimed that a large number of applications have been made to delete voters’ names from the electoral rolls, including those of people who have been living in the same area for years.

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Delhi Elections: Arvind Kejriwal-led AAP delegation meets EC over voter deletion issue, submits proof

Arvind Kejriwal-led Aam Aadmi Party delegation on Wednesday met the Election Commission to present evidence on the alleged deletion of voters’ names in the electoral rolls ahead of the Delhi assembly elections.

Speaking to the media, AAP National Convenor Arvind Kejriwal said that  today they met the Election Commission and submitted before them 3000-page evidence on how BJP is conspiring to cut votes of people of the national capital. He added that votes of the poor, SC and Dalits are being cut. 

The former Delhi Chief Minister stated that they told EC how a BJP member did the work of cutting the votes of 11,000 people in the Shahdara area. He mentioned that they have requested the EC to stop this mass deletion of names before elections and FIRs be registered against those who have applied mass deletion of names. The Election Commission has said that no mass deletions will be done before elections, he continued.

Arvind Kejriwal also mentioned that in cases of voter deletions, a field inquiry will be carried out by the Booth Level Officer (BLO), accompanied by representatives from various political parties.

Earlier on Wednesday, senior AAP leader Manish Sisodia at a press conference alleged that the BJP had submitted a large number of applications for the deletion of voters names from the electoral rolls.

The Senior AAP leader said that when it has become impossible for the BJP to defeat AAP in Delhi, and when it has become impossible to stop Arvind Kejriwal, they are trying to defeat AAP by cutting votes. 

The former Deputy Chief Minister further claimed that a large number of applications have been made to delete voters’ names from the electoral rolls, including those of people who have been living in the same area for years.

The AAP,  which is aiming for a third consecutive term, has accused the BJP of attempting to manipulate the voter rolls to influence the elections.

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No-confidence motion: Congress President Mallikarjun Kharge says Rajya Sabha Chairman Jagdeep Dhankhar a government spokesperson

The Congress Chief explained that the INDIA bloc was compelled to bring the no-confidence resolution due to the prevailing circumstances.

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Congress President Mallikarjun Kharge on Wednesday launched a scathing attack at Rajya Sabha Chairman and Vice President Jagdeep Dhankhar, calling him the biggest government spokesperson. The Congress President said that the biggest reason for disruptions in the Rajya Sabha is the Chairman itself. 

Recently, the INDIA alliance has submitted a notice to bring a motion in Rajya Sabha for the removal of Vice President Jagdeep Dhankhar. Speaking about the opposition parties’ motion, Mallikarjun Kharge pointed out that no resolution had been brought to remove the Vice President since 1952 as the person occupying the post were unbiased and beyond politics and always ran the House as per the rules. However, today, there is more politics than rules in the House, he continued.

He further claimed that the Rajya Sabha Chairman does schooling like a headmaster.  He maintained that from the opposition side, whenever important issues are raised, as per rules the Chairman does not allow the House to have the discussion in a planned way. He mentioned that time and again opposition leaders are stopped from speaking.

Mallikarjun Kharge alleged that Vice President Dhankhar’s fidelity was towards the ruling BJP instead of the Constitution and consitutional tradition.

He added that the Chairman is also working as a spokesperson of the government for his next promotion. He also asserted that he has no hesitation in saying that the biggest disruptor in Rajya Sabha is the Chairman himself.

He also claimed that the Rajya Sabha Chairman’s actions had damaged the dignity of the country. The Congress Chief explained that the INDIA bloc was compelled to bring the no-confidence resolution due to the prevailing circumstances.

He concluded that the Opposition have no personal enmity or political fight with him, but want to tell the countrymen that they have taken this step to safeguard democracy, the Constitution, and after giving it a lot of thought.

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Rahul Gandhi meets Lok Sabha speaker Om Birla amid Parliament standoff, asks to expunge derogatory remark against him

BJP Lok Sabha MPs Nishikant Dubey and Sambit Patra on December 5 had riled up the Opposition Congress by alleging links between Rahul Gandhi and Hungarian.

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Rahul Gandhi meets Lok Sabha speaker Om Birla amid Parliament standoff, asks to expunge derogatory remark against him

Amid Parliament Standoff, Leader of Opposition in the Lok Sabha Rahul Gandhi met Speaker Om Birla and urged him to expunge derogatory remarks made in the House against his family and the Congress. 

After the meeting, Rahul Gandhi told the reporters that the speaker said that he would look into the matter regarding derogatory comments. He added that the Opposition’s aim is that the House must run and discussion should happen in the House. The Congress leader remarked that no matter what the BJP says about him, they want to have a debate on December 13. He continued that the BJP will keep levelling allegations on them but the House must function.

BJP Lok Sabha MPs Nishikant Dubey and Sambit Patra on December 5 had riled up the Opposition Congress by alleging links between Rahul Gandhi and Hungarian.

A day after, while speaking in the House, Nishikant Dubey brought up Soros and the global investigative news network OCCRP (Organised Crime and Corruption Reporting Project).

The BJP leader remarked that the Congress has relations with OCCRP, which gets all its funds from the US government and George Soros. He further questioned if Rahul Gandhi took money from George Soros for the Bharat Jodo Yatra?”

The BJP MP’s statement had caused a high-voltage drama as Congress MPs stormed the Well of the House in protest. Later, the House was adjourned. Following, the Congress members demanded to know the status of their notices regarding breach of privileges against Dubey and Patra.

While responding to queries about BJP’s Patra calling Rahul Gandhi a traitor, Congress MP Priyanka Gandhi Vadra said that those who can call Jawaharlal Nehru, Indira Gandhi and Rajiv Gandhi traitors, have no qualms about calling Rahul Gandhi one. 

Notably, the Winter Session of Parliament has been a washout so far after repeated disruptions on multiple issues. When the session commenced, Congress MPs demanded a discussion on the US Department of Justice indictment against the directors of Adani Green, which led to differences within the Opposition ranks because Congress allies like Trinamool Congress wanted the House to function and discuss issues such as price rise, Manipur unrest and unemployment.

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