Economy

RBI hikes repo rate by 25 basis points

RBI hikes repo rate by 25 basis points

With concerns related to various inflationary risks amid narrowing of the output gap, the Monetary Policy Committee (MPC) voted 5:1 to hike the policy repo rate by 25 bps to 6.5 percent in the August 2018 policy review, as anticipated.

The Reserve Bank of India raised the rate at which it lends to banks from 6.25% to 6.5% on Wednesday, after hiking it for the first time in four years in June. Reverse repo - the rate at which the RBI borrows money from commercial banks within the country - is adjusted to 6.25 per cent.

The repo rate has been hiked from 6.25 per cent to 6.5 per cent. For instance, every time the RBI lowers repo rate, banks are typically expected to pass on the benefit to retail customers.

The move will make the home loans dearer and will have direct impact on the borrowers as the rate hike will lead to banks raising their interest rates in loans.

Analyst said that this hike by RBI will not majorly affect non-resident Indians in the UAE, except those who are holding floating mortgage rates back home in India because most of the existing auto and personal loans are obtained at a fixed rates.

RBI in its policy statement has said that the risks to its 4 per cent inflation outlook has increased since its last meeting in June on account of rising trade tensions.

More news: Pope Francis accepts Archbishop Wilson's resignation

"Uncertainty around domestic inflation needs to be carefully monitored in the coming months", the central bank said while increasing its inflation projection.

The central bank said that GDP growth rate for the April-June quarter is seen at 7.5-7.6 per cent while maintaining the FY19 growth rate at 7.4 per cent.

RBI has projected inflation at 4.6 per cent in Q2, 4.8 per cent in H2 of 2018-19 and 5.0 per cent in Q1 2019-20.

Among the Monetary Policy Committee panel members, Dr Chetan Ghate, Dr Pami Dua, Dr Michael Debabrata Patra, Dr Viral V Acharya and Dr Urjit R Patel voted in favour of the decision while Dr. Ravindra H Dholakia voted against the decision.

The government has chose to fix the minimum support prices (MSPs) of at least 150 per cent of the cost of production for all kharif crops for the sowing season of 2018-19.


  • Samsung's mobile woes drag on profit growth

    Samsung's mobile woes drag on profit growth

    Samsung's semiconductor business posted its highest-ever operating profit of 11.61 trillion won and revenue of 21.99 trillion won. The company's tax bill also rose to about 28 percent of pretax net income, five percentage points higher than a year earlier.
    Manchester bomber rescued by British Navy before deadly attack

    Manchester bomber rescued by British Navy before deadly attack

    The British government wants to extradite Hashem Abedi from Libya where he is being held in a jail by a militia group. Just three years later he detonated a suicide-vest and killed almost two dozen people at an Ariana Grande concert.
    YouTube Starts Supporting Square, Vertical Videos on Desktop Through Dynamic Player

    YouTube Starts Supporting Square, Vertical Videos on Desktop Through Dynamic Player

    The new player also dynamically supports videos with an aspect ratio other than the traditional 16:9 ratio. Google plans to bring yet another improvement to its YouTube app to make things easier for Android users.
  • Why Meghan Markle's Birthday Means Something Special To The Queen

    Why Meghan Markle's Birthday Means Something Special To The Queen

    It's her birthday on August 4 and I want to send her a card. "Just wishing her birthday greetings, nothing more". But now sources claim that the royals have had enough and senior royal aides are trying to come up with a plan.
    US judge blocks release of 3D gun blueprints amid uproar

    US judge blocks release of 3D gun blueprints amid uproar

    3D guns are firearms assembled from ABS plastic parts - the same material found in Legos - that can be made with a 3D printer . State Department officials said their only role was to prohibit export of the blueprints outside the U.S.

    Donald Trump calls for Attorney General Jeff Session to end Russian Federation inquiry

    It's a threat, implied if not explicit: Either end this investigation or you'll lose your job and I'll find someone who'll end it. In a series of tweets , he said Attorney General Jeff Sessions must halt the inquiry into alleged election meddling.
  • Police investigating suspected killer's claims of up to seven murders

    Police investigating suspected killer's claims of up to seven murders

    According to Barney, on the day of the strangling she and Drayton met up for lunch and he told her he was moving to California. Police say Danueal Drayton sexually assaulted and tried to kill a woman in her Hollywood Hills home in California.
    Protests Over Assam List Puts Rajya Sabha On Hold Again

    Protests Over Assam List Puts Rajya Sabha On Hold Again

    The people who have been seen a ineligible for the citizenship will not be offered any right within the nation. The report said that out of 3.29 crore people, names of 2.89 crore have been included in the draft NRC.
    Longest Lunar Eclipse of the century rises behind Rome's Colosseum

    Longest Lunar Eclipse of the century rises behind Rome's Colosseum

    By 9.30 pm on Friday, the roads had emptied out as many Bengalureans, anxious about the inauspicious eclipse, had stayed indoors. The lunar eclipse was set to start at 7:15pm; it ended at 1:28AM on Saturday.
  • Project fans fuming over Steve Price’s comments on plastic bag ban

    Project fans fuming over Steve Price’s comments on plastic bag ban

    Single-use plastic bags take years to break down, and many end up in the environment polluting oceans, rivers and beaches. He landed another joke later on, while Steve was questioning the accuracy of Dee's quoted statistics.

    Ohio State places coach Urban Meyer on 'administrative leave' pending investigation

    At Big Ten media days last month, Meyer discussed his recent firing of Zach Smith and acknowledged awareness of the 2009 incident. The day after Smith was sacked , Meyer was asked about the allegations during the Big Ten Conference Football Media Day.
    Arsenal Thrash PSG 5-1 In Pre-season Friendly

    Arsenal Thrash PSG 5-1 In Pre-season Friendly

    Rob Holding (87′) and Eddie Nketiah (94′) rounded up the triumph with late strikes. We want to find with their quality, with their good positioning.