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Tuesday
August 2020
12:13 AM IST
News Headlines
NIA arrests six more people and conducts searches at 6 places in Kerala gold smuggling case        Union Minister observes fast as BJP seeks to step up pressure on Ker govt in gold smuggling case        Kerala crosses 25,000 COVID-19 cases as 1,169 test positive        Heavy rains forecast in Kerala this week; Low pressure likely in Bay of Bengal        Shah tests +ve for COVID-19, admitted to Medanta hospital in Gurugram        International passengers with negative COVID-19 test report can skip institutional quarantine: Govt        High time Mehbooba Mufti is released, says Rahul Gandhi        Death toll in Punjab spurious liquor tragedy rises to 104        Trump Says Federal Government Should Seek Death Penalty For Boston Bomber        Khamenei''s top aide praises Turkey''s Hagia Sophia move        IPL GC Meet: Final on Nov 10, Chinese sponsors intact, COVID replacements allowed        2nd ODI: Bairstow, Rashid shine in England''s 4-wicket win over Ireland        Kerala''s COVID-19 tally inching towards 25,000 mark, 1129 ccases, death toll climbs to 82        Kerala police SI dies of COVID-19; first from the force to succumb to the virus        If high command forgives rebels, I will welcome them back: Gehlot        Former SP leader and Rajya Sabha MP Amar Singh dies at 64        Wild fire: 200 homes evacuated in Southern California        Emirati nuclear plant successfully starts up first reactor        Ready to push for continued advancement of China-Nepal ties: Xi        Some 17,000 people hit streets of Berlin to protest COVID-19 measures        
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Business News
'RBI to cut rates by 40 bps by Feb despite high inflation'
 
Mumbai: Headline inflation is bound to rise further to 5 per cent for November, but despite the pinch in price rise, the Reserve Bank will go for two consecutive rate cuts on growth concerns, a report said on Thursday.

The consumer price inflation fastened to 4.62 per cent for October in official data released on Wednesday, resulting in concerns over RBI's rate stance, given that the central bank is mandated to keep the number at 4 per cent.

GDP growth plummeted to a six-year low of 5 per cent for the June quarter and is expected to come lower for the September quarter and some analysts are also expecting it to slip below the 5 per cent for FY20.

Analysts at foreign brokerage Bank of America Merrill Lynch said the RBI will cut rates by 0.25 per cent in December, and follow it up with a 0.15 per cent in February.

It can be noted that house economists at SBI have warned against rate cuts to push up growth flagging the risk of "financial instability" that it can cause.

The higher inflation will be driven by base effects or lower inflation in the year-ago period when the same number had dipped to 2.2 per cent, and some pressure on onion prices, they said in a note.

It said the "fundamental drivers of inflation remain weak" which have resulted in the non-food and non-fuel core inflation getting limited to 3.3 per cent in October as against September's 3.7 per cent.

On the growth front, it said the dampness will continue for at least one more quarter and estimated growth by gross value added basis to slip to 4.7 per cent in September from 4.9 per cent in June.

Additionally, agflation will also be in check going forward on well-stocked rivers which should water a bumper winter sowing and the minimum support price hikes are also small, it said.

Despite a 0.5 per cent expected slippage in fiscal deficit to 3.8 per cent, which fuels inflations, the number is still lower than the medium term average of 4.5 per cent, it said.

"Should fiscal policy not be counter-cyclical in a slowdown as sharp as this? Yes, funding the 0.8 per cent of GDP corporate tax rate cut will likely need additional direct or indirect monetisation," it said.


SBI SBI Q1 profit surges 81 pc to Rs 4,189 cr
19 income tax return filing deadline extended till Sept 30
Troubles abound, Boeing losses bloom to USD 2.4 billion in 2Q
Ashok Leyland’s latest range, ‘AVTR’, delivered to customers in Goa
Irani asks textiles sector to 'commercialise opportunities'
ICICI Bank Q1 net profit rises 36% to Rs 2,599 crore
Govt's endeavour has been to further simplify Direct Tax laws: Sitharaman
Vistara receives its first Airbus A321neo aircraft
Wipro to launch 5G edge services solutions suite
Rupee surges 15 paise to 74.59 against US dollar in early trade
BAJAJ Rahul Bajaj to step down as Bajaj Finance Chairman
Sebi comes out with guideline to verify upfront collection of margins
Steel Strips Wheels bags fresh orders worth about Rs 11.25 crore
Policybazaar to raise USD 150 million in third quarter
Long-term story of India, 2-wheeler industry remains intact: Hero MotoCorp
JC Penney cuts 1,000 jobs as it closes stores
Asian markets mostly higher on hopes for coronavirus vaccine
JioMeet sees 5 million downloands within days of launch: Ambani
Rupee slips 9 paise to 75.02 against USD
ICICI Bank to raise up to Rs 15,000 crore to bolster capital base
KERALA NEWS
Kerala crosses 25,000 COVID-19 cases as 1,169 test positive
 Thiruvananthapuram: Kerala on Sunday crossed the 25,000 mark in COVID-19 cases as 1,169 more people  
Heavy rains forecast in Kerala this week; Low pressure likely in Bay of Bengal
Kerala police SI dies of COVID-19; first from the force to succumb to the virus
Kerala reports 1,310 COVID-19 cases; 3 deaths takes toll to 73
INTERNATIONAL NEWS
Trump Says Federal Government Should Seek Death Penalty For Boston Bomber
 WASHINGTON: US President Donald Trump says the federal government must seek the death penalty for Bo
Khamenei''s top aide praises Turkey''s Hagia Sophia move
Wild fire: 200 homes evacuated in Southern California
Emirati nuclear plant successfully starts up first reactor
NATIONAL NEWS
Union Minister observes fast as BJP seeks to step up pressure on Ker govt in gold smuggling case
 New Delhi: Union Minister V Muraleedharan on Sunday observed a day-long fast at his residence here d
Shah tests +ve for COVID-19, admitted to Medanta hospital in Gurugram
International passengers with negative COVID-19 test report can skip institutional quarantine: Govt
High time Mehbooba Mufti is released, says Rahul Gandhi
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