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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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Himanta Biswa Sarma takes oath as Assam chief minister for second consecutive term

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Himanta Biswa Sarma on Tuesday took oath as Assam chief minister for a second consecutive term as the Bharatiya Janata Party-led National Democratic Alliance (NDA) returned to power in the state for a third straight term.

The swearing-in ceremony was held at the Khanapara Veterinary College Field in Guwahati in the presence of Prime Minister Narendra Modi, Union Home Minister Amit Shah, Defence Minister Rajnath Singh, Finance Minister Nirmala Sitharaman, Union minister Sarbananda Sonowal and BJP national president Nitin Nabin. More than 40 NDA chief ministers and deputy chief ministers also attended the event.

Along with Himanta Biswa Sarma, four ministers from NDA alliance partners took oath as cabinet ministers in the new Assam government.

The NDA secured 102 seats in the 126-member Assam Legislative Assembly in the 2026 elections. The BJP won 82 seats, while allies Asom Gana Parishad (AGP) and Bodoland People’s Front (BPF) secured 10 seats each.

Ministers sworn in with Himanta Biswa Sarma

Atul Bora

AGP president Atul Bora took oath as a cabinet minister in the new Assam government. Bora was elected from the Bokakhat constituency in the 2026 Assembly elections.

A senior AGP leader, Bora has represented Bokakhat since 2016 and earlier served as MLA from Golaghat between 1996 and 2001. He has handled several important portfolios in previous Assam governments, including agriculture, horticulture and food processing, animal husbandry and veterinary, urban development, and town and country planning.

Ajanta Neog

Senior BJP leader Ajanta Neog was sworn in as a cabinet minister and is expected to remain a key face in the Himanta Biswa Sarma-led government.

Neog, who won from the Golaghat constituency in the 2026 Assembly elections, served as Assam’s finance minister in the previous government. She became the first woman finance minister of the state and has represented the Golaghat Assembly constituency continuously since 2001.

Rameswar Teli

Senior BJP leader Rameswar Teli also took oath as a cabinet minister. He was elected from the Duliajan constituency in the 2026 Assembly elections.

Teli previously served as Union minister of state for petroleum and natural gas, labour and employment, and food processing industries. He had represented Dibrugarh as a Member of Parliament from 2014 to 2024 and earlier served as MLA from Duliajan between 2001 and 2011.

Charan Boro

BPF leader Charan Boro was sworn in as a cabinet minister in the new Assam government. He was elected from the Majbat constituency in the 2026 Assembly elections.

Boro served as transport minister in the previous government and has represented Majbat in the Assam Legislative Assembly since 2016. He has also handled departments related to transport and Bodoland welfare.

Ranjeet Kumar Dass likely to become Speaker

Senior BJP leader Ranjeet Kumar Dass is set to become the new Speaker of the Assam Legislative Assembly.

Dass won from the Bhawanipur-Sorbhog constituency in the 2026 Assembly elections. A former journalist, he previously served as Assam’s minister for panchayat and rural development, food and civil supplies, and consumer affairs. He had also served as Speaker of the Assam Assembly between 2016 and 2017.

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PM Modi welcomes Ayushman Bharat rollout in West Bengal

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Prime Minister Narendra Modi on Tuesday welcomed the decision of the new BJP government in West Bengal to implement the Ayushman Bharat health insurance scheme, saying the welfare of the people of the state remains the Centre’s top priority.

The development comes days after the BJP formed its first government in the state under Chief Minister Suvendu Adhikari following the 2026 Assembly elections. During the first cabinet meeting, the Bengal government approved the rollout of Ayushman Bharat along with several other central schemes.

In a post on X, Modi said he was happy that people in West Bengal would now benefit from Ayushman Bharat, which provides health insurance coverage of up to Rs 5 lakh annually to eligible families. He also said the “double-engine government” would ensure seamless implementation of major central welfare programmes in the state.

Ayushman Bharat, launched by the Centre in 2018, is one of India’s flagship public healthcare schemes aimed at providing cashless treatment to economically vulnerable families across the country.

After chairing his first cabinet meeting, Adhikari described the decisions taken by the new government as steps toward “Asol Poriborton” or real change in the state. The BJP secured 207 seats in the 294-member West Bengal Assembly, defeating the Trinamool Congress in the recent elections.

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AIADMK’s CV Shanmugam faction extends support to Vijay-led TVK in Tamil Nadu

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AIADMK

A faction of the AIADMK led by senior leader C.V. Shanmugam on Tuesday announced support to the ruling coalition headed by Tamil Nadu Chief Minister C. Joseph Vijay, adding a fresh twist to the state’s post-election political developments.

The development comes amid an escalating internal power struggle within the AIADMK following the 2026 Tamil Nadu Assembly election results. Reports indicate that the Shanmugam-S.P. Velumani camp has been attempting to consolidate support from party MLAs while differences with the Edappadi K. Palaniswami faction continue to deepen.

According to reports, the Shanmugam faction decided to back the Vijay-led Tamilaga Vettri Kazhagam (TVK) government ahead of a crucial floor test in the Assembly. The move is being viewed as a significant political shift in Tamil Nadu, where parties have been exploring alliances and support arrangements after the fractured mandate delivered in the Assembly polls.

TVK emerged as the single-largest party in the Tamil Nadu Assembly elections with 108 seats, falling short of the majority mark of 118 in the 234-member House. Since the results, multiple political developments and alliance discussions have continued in the state.

The AIADMK has also been witnessing internal disagreements over the legislature party leadership. Reports said rival camps within the party submitted separate claims regarding leadership positions and legislative appointments.

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