RBI holds key rate, lowers growth forecast, moves to boost liquidity

IN LINE with expectations, the Reserve Bank of India (RBI) lowered the cash reserve ratio (CRR) by 50 basis points (bps) to 4 per cent to boost liquidity in the financial system, even as the six- member Monetary Policy Committee (MPC) left the repo rate - the key policy rate - un- changed at 6.5 per cent for the 11th consecutive time. 

Foreign Secy going to Bangladesh on Dec 9 for consultations: India

AMID THE strain in ties between the two countries, India announced Friday that Foreign Secretary Vikram Misri will be visiting Bangladesh on December 9 for "consultations".The visit comes days after New Delhi urged Dhaka to ensure the safety and security of Hindus and other minorities there following reports of violence against them.

'Beginnings of something potentially important': EAM on semiconductor alliance between India and Japan

HIGHLIGHTING THE possibility for semiconductor collaboration between India and Japan, External Affairs Minister said that he was "seeing the beginnings of something potentially important" that could reshape global geopolitical dynamics. 

Don't create new climate obligations, India tells ICJ

ARGUING THAT the primary responsibility of the developed countries in causing climate change was an "indisputable" scientific fact, India on Friday asked the International Court of Justice not to create any new obligations for countries on climate change beyond those that are enshrined in existing international laws on this issue. 

INFLATION AT CENTRE

IN THE RUN-UP to the December meeting of the monetary policy committee, there was a debate over whether the sharp deceleration in growth should prompt a cut in interest rates, even as inflation remained above the upper threshold of the RBI's inflation targeting framework. The MPC, however, continued to attach primacy to inflation concerns. Resisting pressure from the government and the clamour for lower rates from sections of the market, it maintained the status quo, though two external members on the committee voted for a cut. The repo rate stands at 6.5 per cent. Alongside, the MPC chose to continue with its neutral policy stance.

Holding steady

THE MONETARY POLICY Committee's (MPC) decision to leave the repo rate unchanged would have been a tough one. It is difficult to choose between rising inflation and a sudden slowdown in economic growth. Though the MPC did lower the cash reserve ratio (CRR) this time, we expect it to go further and take the knife to the repo rate during its next policy review meeting in February.

For 21 months now, the MPC has kept rates unchanged. It continues to wait for a durable easing in the Consumer Price Index (CPI)-based inflation. The gauge has been under pressure from food prices. Over the past three months, headline CPI inflation has been on the ascent, breaching the upper limit of the MPC's 4-6 per cent tolerance band in October. 

ANOTHER STEP AGAINST TB

PRIME MINISTER NARENDRA Modi gave a clarion call for the elimination of TB from the country. Under his leadership, a new model of TB care was adopted and India pioneered several innovative approaches over the last few years to bring a paradigm shift in TB prevention, diagnosis and treatment. Findings from the WHO's Global TB Report 2024 acknowledged the efficacy of the approach. It noted a 17.7 per cent decline in TB incidence in India from 2015 to 2023- double the rate of decline observed globally. Not just that, the country diagnosed 25.1 lakh patients, marking a significant rise in treatment coverage from 59 per cent in 2015 to 85 per cent in 2023. 

Platforms like PRAGATI

AS NATIONS GRAPPLE with how to implement ambitious infrastructure agendas amid rising costs and complex regulatory environments, India has quietly pioneered an innovative solution. While much recent attention has focused on the country's technological advances in digital payments and identity systems, another digital transformation has been revolutionising how India manages its massive infrastructure projects. 

RBI Governor: Slowdown in economic activity bottomed out in July-Sept

RESERVE BANK Governor said high frequency indicators available so far suggest that the slowdown in domestic economic activity bottomed out in the second quarter (Q2) of 2024-25, and has since recovered, aided by strong festive demand and pick up in rural activities. 

Interest rate ceiling on FCNR(B) deposits hiked to attract capital

IN ORDER to attract more capital inflows, the RBI has decided to in- crease the interest rate ceilings on FCNR(B) deposits. These are foreign currency term deposits that non-resident Indians can open with Indian banks. Effective from Friday, banks are permitted to raise fresh FCNR(B) deposits of 1 year to less than 3 years maturity at rates not exceeding the ceiling of overnight Alternative Reference Rate (ARR) plus 400 bps as against 250 bps at present. "Similarly, for deposits of 3 to 5 years maturity, the ceiling has been increased to overnight ARR plus 500 bps as against 350 bps at present. This relaxation will be available till March 31, 2025," the RBI said. 

What the collapse of France's govt means, what happens now

PRESIDENT EMMANUEL MACRON has vowed to stay in office until the end of his term in 2027, defying calls for his resignation after the minority government of Prime Minister Michel Barnier collapsed in dramatic fashion in a historic vote in France's National Assembly on Wednesday. Barnier, a veteran conservative who was appointed to the post by Macron only in September, has become the shortest-serving prime minister of the French Fifth Republic that began in 1958. 

WHY LOW-INTENSITY CYCLONE FENGAL CAUSED LARGE-SCALE DESTRUCTION

CYCLONE FENGAL, which made landfall near Puducherry on November 30, was a low-intensity storm as it maintained a wind speed of about 75-95 kmph. However, the cyclone left a trail of destruction in its wake. At least 12 people died, mostly in Tamil Nadu, numerous properties were damaged, and standing crops were destroyed over large areas. Why did Cyclone Fengal cause wide- spread destruction despite being a low- intensity storm? 

How the SC hears cases

A LARGE number of cases are filed before the Supreme Court every year, even as thou- sands of other cases are already pending. How does the Supreme Court decide which cases to prioritise?

Over the last month, the SC has been prioritizing special leave petitions (SLPs). These are cases where the court would have issued notice to the parties over the last few years, but is yet to admit (grant leave or permission to appeal) them. The court has been hearing these cases for three days of the workweek, and has kept only Mondays and Fridays for fresh cases. In effect, the SC is limiting the listing of cases in which a detailed hearing is required. This is part of Chief Justice of India (CJI) Sanjiv Khanna's plan to address the large backlog of cases in the top court. As master of the roster, successive CJIs have attempted to tackle the problem of pendency in various ways.

What is the debate over alcohol sale at Nagaland's famed Hornbill Festival?

INFLUENTIAL CHURCH bodies in Nagaland -a dry state-have criticized the state government's decision to permit the sale of liquor at the 25th Hornbill Festival, which is being held at Kisama Heritage Village in Kohima district. The sale of alcohol, including the so-called Indian-made foreign liquor (IMFL) and the traditional rice beer, at the festival has long been a contested issue. The state government has been mulling a re- view of the Nagaland Liquor Total Prohibition (NLTP) Act of 1989.