Amid the epidemic, the Reserve Bank's MPC meeting starting today has been canceled

-

Mumbai, Ta. 28 September 2020, Monday

The Reserve Bank of India's Monetary Policy Committee (MPC) today announced the abrupt cancellation of its bi-monthly monetary policy review meeting starting tomorrow. No reason was given by the RBI for canceling the meeting. The new date will be announced soon, the Reserve Bank said in a list.

MPC members have not been appointed by the government. This is believed to have forced the meeting to be adjourned. The MPC had earlier held a meeting via video conferencing in August.

It is likely that the MPC will keep the interest rate unchanged at the next meeting. No change in interest rates will be made in view of high inflation. Inflation is currently high due to supply issues. At its August meeting, the RBI kept interest rates unchanged. Retail inflation in the country has been hovering above 5 per cent, well above the Reserve Bank's target of between 6 and 7 per cent.

The RBI has cut the repo rate by 114 basis points since February this year. In view of high inflation, the MPC should maintain the repo rate and also maintain an accommodative trend, as recommended by the Confederation of Indian Industry (CII). Growth is also important but in the current epidemic, the Reserve Bank has been waiting until inflation goes down.

There is scope for interest rate cuts but that is not likely to happen at present. This may be seen in the February 2021 meeting, said a banker. Grain production is also expected to reach record lows in the current year, which could lead to lower inflation in December. Retail inflation stood at 7.5 per cent in August. The repo rate is currently 3%.

In states like Maharashtra, the rate of stamp duty has been reduced and further reduction in interest rates in view of offers being offered by developers could accelerate the recovery in demand in the real estate sector, said a developer.


Comments

Post a Comment

Popular posts from this blog

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja
Read more

The brokerage firm objected to SEBI's new proposal regarding Algo Trading

-
Image
MUMBAI: Brokerage firms and fintech companies have objected to market regulator SEBI's discussion paper considering all stock trading orders issued through Application Programming Interface (API) as separate trading, saying it could adversely affect the growth of such trading from India. Algo trading is considered to be an automatic buying-selling system based on algorithms. SEBI has recently said in a discussion paper that it would create a framework for regulating Algo trading by retail investors. A senior official of a brokerage firm said that monitoring of Algo trading is a need of the hour, but such an attempt could hamper the growth of Sebi Algo trading. He added that if the suggestions made in the SEBI discussion paper were implemented, it would be difficult for brokers to make the API available. About 70% of the daily trading volume in Indian stock markets is transacted through advanced forms of algo trading. Algo Trading came to India in the year 2006, but then only se
Read more