Monday, August 8

Economy

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...
India’s manufacturing activities moderate in January as new orders, production expand at slower pace
Economy

India’s manufacturing activities moderate in January as new orders, production expand at slower pace

India’s manufacturing sector activities moderated in January as new orders and production expanded at a slower rate as the new wave of COVID-19 restricted growth and affected business confidence that slipped to a 19-month low, a monthly survey said on Tuesday. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 54.0 in January, down from 55.5 in December and signalled the weakest improvement in the health of the sector since last September. The January PMI data pointed to an improvement in overall operating conditions for the seventh straight month. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. “The latest PMI results indicated that the new wave of COVID-19 had a mild impact on the performance ...
India spends record $55.7 billion on gold imports in 2021: Report
Economy

India spends record $55.7 billion on gold imports in 2021: Report

India splurged a record $55.7 billion on gold imports in 2021, buying more than double the previous year's tonnage as a price drop favoured retail buyers and pent up demand emerged for weddings that were delayed when the pandemic first hit. The previously unreported details of the world's second biggest consumer nation's soaring imports were disclosed to Reuters by a senior government official who requested anonymity as he was not authorised to speak to media. The 2021 gold import bill easily doubled the $22 billion spent in 2020, and surpassed the previous high, set in 2011, of $53.9 billion, according to the official, who tracks broad import trends. In volume terms, India imported 1,050 tonnes of gold in 2021, the most in a decade, and far more than 430 tonnes imported in 2020, ...