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Inflation, fiscal uncertainty induced RBI to hold rates
Mumbai, Oct 18 (IANS) RBI Governor Urjit Patel had recommended keeping the central bank’s key interest rate unchanged at 6 per cent citing risks to inflation and uncertainties on the external and fiscal fronts, the minutes of October’s monetary policy committee (MPC) meeting released on Wednesday showed.
“We have to be vigilant on account of uncertainties on the external and fiscal fronts; this calls for a cautious approach,” he said.
Belying industry expectations, RBI maintained its hawkish stance at its fourth bi-monthly monetary policy review of the fiscal here earlier this month, refusing to cut rates in view of the rising inflationary pressure and concerns over “fiscal slippage”.
On the other hand, the central bank lowered the country’s growth projection for 2017-18, pegging the Gross Value Added (GVA) to 6.7 per cent, from earlier estimate of 7.3 per cent.
Declaring that inflation is expected to rise from its current level of around 3.3 per cent “and range between 4.2-4.6 per cent in the second half of this year”, Patel said the MPC remains committed to keeping headline inflation close to 4 per cent “on a durable basis”.
Five members of the six-member MPC voted in favour of maintaining the key lending rate.
The MPC had expressed concern about the upside risks to inflation and that implementation of farm loan waivers by states may result in fiscal slippages resulting in upward pressure on prices.
“Although the domestic food price outlook remains largely stable, generalised momentum is building in prices of items excluding food, especially emanating from crude oil. The possibility of fiscal slippages may add to this momentum in the future,” it said.
Besides Patel, RBI Executive Director Michael Patra, RBI Deputy Governor Viral V. Acharyaand outside members Chetan Ghate (Professor, Indian Statistical Institute) and Pami Dua (Director, Delhi School of Economics) were in favour of holding the repo rate at which the apex bank lends short term to commercial banks.
One of the government nominated external members, Ravindra H. Dholakia, a Professor at IIM-Ahmedabad, voted for a repo rate reduction of at least 25 basis points.
“In my view, the policy rate should have been cut by 50 basis point long back in June 2017. A cut of 25 basis point in August was too small and too late. We can still make the additional cut of 25 basis point now if we want to be extremely cautious,” Dholakia said at the MPC meeting.
“Otherwise, my opinion is that we have a space for a cut of about 40 basis point at present with due consideration to any possible upward risk to future inflation,” he added.
Acharya said that the Reserve Bank remains committed to improving the monetary policy’s transmission by the banks.
“I believe there is still some scope left for transmission of past monetary policy accommodation to existing loan portfolio that is tied to the base rate,” Acharya said.
Patel noted that recent reforms like the Goods and Service s Tax (GST) may have had some impact on growth in the short run.
“To improve immediate growth prospects, teething troubles relating to GST need to be addressed expeditiously. Concerted efforts also need to be made to encourage investment activity by removing various constraints,” he said.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
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