Governor Shaktikanta Das also provided a positive outlook for manufacturing and services sector, while adding that agricultural sector was expected to remain resilient.
Markets were expecting pause in rate hike cycle after 25 basis points hike but RBI gave no such assurance. Globally, too, central banks have continued to tighten monetary conditions.
While overall inflation is moderating, high and persistent core inflation remains a worry, as does the uncertain global growth & inflation environment, the governor said.
This is the fourth straight raise by the RBI, which has has now raised rates by a total 190 basis points since its first unscheduled mid-meeting hike in May.
While announcing the third bi-monthly monetary policy review Friday, RBI Governor Shaktikanta Das said reduction on lending rate has reduced the burden on households.
RBI announces fresh lending support to aviation, tourism & other sectors as MPC keeps key policy rates unchanged. RBI Governor Das says Covid spread in rural India poses risk to growth.
New G-SAP tool is RBI’s way of keeping govt’s interest burden low. But amid inflation concerns, it also has to raise interest rates to prevent price rise.
Compassion and cohabitation with animals are ingrained in the Indian value system. A humane solution must be found for the rising conflict between man and free-range animals.
New bill aims to fix key issues with IBC 2016, including delays & patchy implementation, and protect creditors, with window for genuine promoters to retain control of their companies.
Putin sees this as a victory. Europeans have decided to deal with Trump on his terms for the sake of the larger Western alliance. We look at the lessons for us in India.
COMMENTS