Wednesday, December 7

Economy

jerome Powell to Set Stage For Slowing Fed ate Hikes Amid Hawkish Tone
Economy

jerome Powell to Set Stage For Slowing Fed ate Hikes Amid Hawkish Tone

Jerome Powell is scheduled to deliver a speech, nominally focused on the labor market, at an event on Wednesday hosted by the Brookings Institution in Washington. It will be one of the last from policymakers before the start of a quiet period ahead of their Dec. 13-14 gathering. Chair Jerome Powell is expected to this week cement expectations that the Federal Reserve will slow its pace of interest-rates increases next month, while reminding Americans that its fight against inflation will run into 2023. Powell is scheduled to deliver a speech, nominally focused on the labor market, at an event on Wednesday hosted by the Brookings Institution in Washington. It will be one of the last from policymakers before the start of a quiet period ahead of their Dec. 13-14 gathering. The event provides ...
How to Set Financial Goals for Your Future
Economy

How to Set Financial Goals for Your Future

Setting short-term financial goals, as well as midterm and long-term, is an important step toward becoming financially secure. If you aren’t working toward anything specific, you’re likely to spend more than you should. You’ll then come up short when you need money for unexpected bills, not to mention when you want to retire. You might get stuck in a vicious cycle of credit card debt and feel like you never have enough cash to get properly insured, leaving you more vulnerable than you need to be to handle some of life’s major risks. Even the most prudent person can't prepare against every crisis, as the world learned in the pandemic and many families learn every month. What thinking ahead does is give you a chance to work through things that could happen and do your best to prepare for the...
RBI boosts repo rate to 4.9 percent, predicting higher inflation over the next three quarters.
Economy

RBI boosts repo rate to 4.9 percent, predicting higher inflation over the next three quarters.

The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) unanimously decided on Wednesday to raise the benchmark policy rate by 50 basis points, bringing the repo rate to 4.90 percent, following a surprise rate hike in an off-cycle meeting in May. As a result, the standing deposit facility (SDF) rate has been changed to 4.65 percent, while the marginal standing facility (MSF) rate has been adjusted to 5.15 percent, and the bank rate has been adjusted to 5.15 percent. The MPC also unanimously agreed to keep focusing on the removal of accommodation to keep inflation in check while boosting growth in the future. While the real GDP growth prognosis for FY23 has been kept at 7.2 percent, with Q1 at 16.2 percent, Q2 at 6.2 percent, Q3 at 4.1 percent, and Q4 at ...
To protect the rupee, the RBI may be cautious about spending FX reserves
Economy

To protect the rupee, the RBI may be cautious about spending FX reserves

When the Federal Reserve tightens, the Reserve Bank of India tries to defend its currency once more. Analysts expect it to launch a more limited defense this time, geared at fighting off the worst of speculative attacks rather than drawing a line in the sand when global capital flows are shifting and the Fed is expected to increase throughout the year. To save ammunition amid a broad dollar surge spurred by expectations of aggressive monetary tightening by the Federal Reserve, the RBI may choose a limited intervention policy. According to analysts, the RBI's stated goal is to reduce excessive currency volatility, and reserves have declined in recent weeks, indicating market involvement. On Monday, the rupee fell to a new low of 77.53 per dollar as the dollar rose further and a...
Power outage risk increases as severe heat spurs coal demand
Economy

Power outage risk increases as severe heat spurs coal demand

India risks a repeat of last summer’s power outages as soaring temperatures boost demand for coal that’s used to generate about 70 percent of the country’s electricity. The hottest March in more than a century has heralded an early start to summer, increasing power consumption by air conditioners and refrigerators. While state-run miner Coal India is producing at record levels this month, that may not be enough to replenish power plant stockpiles that dwindled to barely a third of required levels at the start of this week. Coal India, which accounts for four of every five tons of the fuel mined in the country, boosted its output by 27 percent in the first half of April from a year earlier. Still, escalating demand seems to “dwarf” that supply increase, the Kolkata-based c...
Petrol, diesel prices hiked by 80 paise; total rise at Rs 10 per litre
Economy

Petrol, diesel prices hiked by 80 paise; total rise at Rs 10 per litre

Oil companies increased the price of petrol and diesel in Delhi by 80 paise each, marking the 14th such hike in two weeks. Petrol costs Rs 105.41 and diesel Rs 96.67 per litre after the hike. In Mumbai, petrol and diesel prices cost Rs 120.51 and Rs 104.77, respectively. On Tuesday, the rate of petrol in Parbhani district in Maharashtra reached Rs 122.67 a litre, one of the highest prices in the country., attributed to the long distance of over 400 km between Parbhani city located in the Marathwada region and the fuel depot at Manmad in the Nashik district in north Maharashtra. “The cost of fuel in Parbhani (district) is high due to the long distance between the Panewadi fuel depot at Manmad in Nashik district and Parbhani city," Parbhani Petrol Dealers Association president A...
Petrol, diesel prices up by 80 paise; total increase now stands at Rs 6.40
Economy

Petrol, diesel prices up by 80 paise; total increase now stands at Rs 6.40

Petrol and diesel prices were on Thursday hiked by 80 paise a litre each, taking the total increase in rates in the last 10 days to Rs 6.40 per litre. Petrol in Delhi will now cost Rs 101.81 per litre as against Rs 101.01 previously while diesel rates have gone up from Rs 92.27 per litre to Rs 93.07, according to a price notification of state fuel retailers. Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation. This is the ninth increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22. In all, petrol and diesel prices have gone up by Rs 6.40 per litre each.
Union Budget will be of great help in implementing National Education Policy: PM Modi
Economy

Union Budget will be of great help in implementing National Education Policy: PM Modi

Prime Minister Narendra Modi on Monday said the Union Budget for 2022-23 will be of great help in implementing the National Education Policy on the ground and asserted that the decision to set up a National Digital University can solve the problem of shortage of seats in educational institutions in the country. Addressing a webinar on the positive impact of the Union Budget 2022-23, Modi said the budget focuses on five aspects related to the education sector -- universalization of quality education, skill development, urban planning and design, internationalization and AVGC (Animation Visual Effects Gaming Comic). Prime Minister Modi asserted that digital connectivity is what kept the education system running in this time of global pandemic. "We are seeing how the digital divide is r...
World Bank warns developing nations of post-COVID fragility in financial sector
Economy

World Bank warns developing nations of post-COVID fragility in financial sector

The World Bank has called on developing countries to improve the health of their financial sectors, warning that risks created by the COVID-19 pandemic had led to certain fragilities from what it called 'non-transparent debt'. These risks – as per the Bank's World Development Report 2022, released on February 15 – may currently be hidden by the interrelated nature of household, corporate, bank, and government balance sheets. "The risk is that the economic crisis of inflation and higher interest rates will spread due to financial fragility. Tighter global financial conditions and shallow domestic debt markets in many developing countries are crowding out private investment and dampening the recovery," World Bank Group President David Malpass said. According to the World Development...
Govt recapitalised PSBs with Rs 3.10 lakh crore capital infusion over last 5 years: MoS Finance Bhagwat Karad
Economy

Govt recapitalised PSBs with Rs 3.10 lakh crore capital infusion over last 5 years: MoS Finance Bhagwat Karad

The government has recapitalised public sector banks (PSBs) by infusing over Rs 3.10 lakh crore in the last five fiscals, a majority of which was through issuance of recapitalisation bonds, Parliament was informed on Monday. "Government has infused Rs 3,10,997 crore to recapitalise banks during the last five financial years i.e., from 2016-17 to 2020-21, out of which Rs 34,997 crore were sourced through budgetary allocation and Rs 2,76,000 crore through issuance of recapitalisation bonds to these banks," Minister of State for Finance Bhagwat Karad said in a written reply in the Lok Sabha. He was responding to a host of questions asked by Congress party's Member of Parliament Manish Tewari. Asked whether heavy haircuts were doled out to large companies such as Essar, DHFL and Videocon, c...