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Repo rate, reverse repo rate remain unchanged amid Omicron threat

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3 years ago

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Repo rate, reverse repo rate remain unchanged amid Omicron threat

The Governor of the Reserve Bank of India Shakti Kantadas said after the meeting that the Reserve Bank of India maintained its repo rate and reverse repo rate unchanged at the bimonthly policy review meeting on Wednesday. Das added that India is better prepared to fight the pandemic, and in several sectors, output before the pandemic has exceeded, and there is little demand for external financing. However, due to the emergence of a new Covid variant Omicron in some countries, and other reasons, policy support is needed.

As the central bank decides to maintain its easing stance, the repo rate will remain at 4% and the reverse repo rate will remain at 3.35%. MSF also remains unchanged. A 5:1 majority vote supports RBI’s relaxed position.

“The recovery interrupted by the second wave of pandemics is gaining traction, but it is not strong enough to be self-sustaining and durable. This underscores the importance of continued policy support,” the governor said.

The last time the Reserve Bank of India changed these key lending rates was in May 2020. When the Reserve Bank of India last changed its policy interest rate, India’s GDP fell by 24.4%. Seeing the recovery, the economy grew by 20.1% in the April-June 2021 quarter. In the July-September quarter of 2021, GDP grew by 8.4%, while it contracted by 7.4% in the same period last year. As the central and local governments cut fuel taxes, the inflation rate has been within RBI’s 2-6% target range. However, the damage to food crops caused by heavy rains and rising prices in the telecommunications industry may once again push up inflation.

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Consumer prices rose by 4.48% year-on-year in October, up from 4.35% in September. The new Covid-19 strain Omicron, first discovered by South African scientists, is seen as the next potential uncertainty factor in the Indian economy. This variant was first reported from South Africa and has been listed as a variant of concern by the World Health Organization. It spread rapidly in India, and Omicron cases have been reported in Delhi, Maharashtra, Karnataka, Rajasthan, and Gujarat.

News Source : Hindustan Times

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

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20 hours ago

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November 21, 2024

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Following US SEC charges of bribery against Gautam Adani, opposition parties criticise PM Narendra Modi and call for a JPC investigation.

As billionaire Gautam Adani faces charges in the US for alleged bribery and fraud, the Opposition on Thursday intensified its attack on the Centre over its alleged links with the Adani Group.

Gautam Adani has been charged in the US with allegedly paying $250 million in bribes to Indian officials between 2020 and 2024 to secure favourable terms for solar energy contracts. The scheme, prosecutors said, could have earned Adani’s group over $25 billion in profits.

Congress demands JPC probe

Reacting to the charges, the Congress called for a Joint Parliamentary Committee (JPC) probe into alleged scams involving Adani’s conglomerate. The party also demanded the appointment of a “new and credible” Sebi chief to investigate Adani’s financial dealings and compliance with securities laws.

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Congress leader Jairam Ramesh said the US Securities and Exchange Commission’s (SEC) actions highlight the failure of Indian institutions to investigate the group. “The indictment vindicates Congress’s demand since January 2023 for a JPC into the Modani scams,” Ramesh wrote on X.

He accused Prime Minister Narendra Modi of shielding Adani and claimed Congress’s “Hum Adani Ke Hain Kaun” (HAHK) series had exposed the businessman’s alleged fraud and his ties with the PM.

The fact that it has taken a foreign jurisdiction to properly investigate Adani only shows how Indian institutions have been captured by the BJP, and how decades of institutional development have been undone by greedy and power hungry leaders, the Congress leader said in another post.

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“All of this is consistent with a long record of fraud and criminality carried out with impunity with the obvious protection of the Prime Minister,” Ramesh charged.

Other Oppn leaders join attack

Other opposition leaders joined the attack. Trinamool Congress MP Saket Gokhale questioned the BJP’s involvement in Adani’s dealings and demanded an independent judicial probe.

Aam Aadmi Party leader Sanjay Singh accused PM Modi of allowing Adani to tarnish India’s global reputation.

ALSO READ- Adani Group shares plunge after US SEC charges, Adani Green down 16%

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Adani stocks latest updates

The allegations rattled markets, with Adani Group stocks plunging. Adani Enterprises fell 20 per cent in pre-open trade, while shares of Adani Ports, Adani Green, Adani Power, and others dropped between 7 per cent and 18 per cent.

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