As web-based media sites publish a woman's allegations of sexual harassment against CJI Ranjan Gogoi, the Supreme Court Secretariat denies all charges and Justice Gogoi recuses himself from passing orders. He says it is a larger conspiracy to destabilize the judiciary

News Snippets

  • BCCI ombudsman fines Hardik Pandya and KL Rahul Rs 20 lakhs each for misogynistic comments on the chat show Koffee With Karan
  • Buzz around BJP fielding Sunny Deol from Amritsar as Amit Shah meets the actor
  • EC bans web series on Modi and asks the channel to take down all content
  • #MeToo reaches Supreme Court. Former junior research assistant levels sexual harassment charges against CJI Ranjan Gogoi
  • In West Bengal, official in charge of EVMs goes missing but EC says it is for personal reasons
  • Mulayam and Mayawati share the stage at Mainpuri to bury 24-year old enmity
  • After nation-wide outrage, Pragya apologizes and says Karkare was a martyr who was killed by enemy bullets
  • BJP says Pragya's statement are her personal views
  • Pragya Thakur, Malegaon blasts accused and BJP candidate from Bhopal, says police officer Hemant Karkare of anti-terror squad, tortured her in jail and was killed in the 26/11 operations due to her "curse"
  • PM Modi defends choice of Pragya Thakur as BJP's contestant from Bhopal
  • India suspends trade across the Line of Control with Pakistan
  • PM Modi says Pak PM Imran Khan tried to influence Indian elections with "reverse swing" by making comments favouring him
  • 66% voting recorded in phase 2. sporadic violence reported from many places, especially West Bengal
  • Election Commission bans chowkidar chor hai campaign in MP
  • BJP workers' son commits suicide by hanging from a tree in West Bengal
RBI
RBI Rate Cut: Lending By Banks Must Take Off To Revive The Economy

By Linus Garg

About the Author

Linus Garg Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

The financial markets had expected the RBI’s monetary policy committee (MPC) to cut repo rates. While the majority expected it to be 25 basis points, some even expected the MPC to go deeper and announce 50 basis points cut as inflation was way below RBI’s target of 4%. When the MPC chose to cut interest rates by only 25 basis points, it showed that it had taken a much broader view of the realities than just be bound by lower inflation and slowing growth.

There are two things on the horizon that can easily cause a spike in inflation. The first is the forecast that monsoons in India this year could well be below normal due to El Nino. Lower crop production could inflate the price of the food basket and cause the overall inflation to jump by leaps and bounds in no time. Then, oil prices, despite the global economic slowdown, show no signs of going down. As the Opec cartel has cut down production, oil prices are hovering a $70 per barrel. The good news is that the economic slowdown means that there is little chance of oil prices jumping sharply but the chance of them going down is also remote.

Hence, the RBI has rightly given a small nudge to the economy rather than go the whole hog. It has decided to wait until the next meeting in June to take further action. With two successive rate cuts and a huge amount of liquidity injected in the system, lending has now to take off if the slowing economy is to be revived. For that to happen, banks have to pass the rate cut to borrowers. Last time, that did not happen. But now the RBI and the government have to nudge the banks seriously to start lending to good borrowers at rates that match the rate cuts by the RBI. More than that, the government will have to revive the economy by investing in infrastructure. But all that can only happen when a new government is in place in June. Hence, the next MPC meeting will be of great significance.

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