Policy space exists to address growth concerns: RBI Governor | WeForNews | Latest News, Blogs Policy space exists to address growth concerns: RBI Governor – WeForNews | Latest News, Blogs
Connect with us

Business

Policy space exists to address growth concerns: RBI Governor

Published

on

Shaktikanta Das

Mumbai, Oct 18 : In what could mean further rate cuts by India’s central bank, RBI Governor Shaktikanta Das has said at the bi-monthly monetary policy committee (MPC) meeting here earlier this month that “there is policy space to address growth concerns”, according to the minutes of the MPC meeting released on Friday.

In 2019, the Reserve Bank of India (RBI) has delivered 135 basis points (bps) of cuts in its key lending rate.

Das, according to the minutes, saw domestic demand moderating significantly.

“As the inflation scenario remains benign with headline inflation projected at below target in the remaining period of 2019-20 and in Q1:2020-21, there is policy space to address growth concerns,” Das said.

“The weakening of private consumption, which, for long, has been the bedrock of aggregate demand, in particular, is a matter of concern,” the Governor added.

Besides, a number of MPC members expressed concerns over the transmission of rates. While Das said that “monetary transmission has remained weak” external member Chetan Ghate said the “monetary transmission has worsened since the last review”.

Das, however, cautioned the government, saying that “there is also a need to be watchful of the fiscal situation; however, the government has indicated that it would maintain the fiscal deficit”.

On the road ahead, MPC member Michael Debabrata Patra stressed that a full throttle effort by all arms of macroeconomic management is the need of the hour.

The RBI on October 5 announced a 25 basis point rate cut in its repo, or short-term lending rate for commercial banks, to 5.15 per cent, from 5.40 per cent, after the rate of gross domestic product (GDP) growth during the first quarter slumped to 5 per cent.

Business

Sensex adds 135 pts in early trade, PSU banks gain

Published

on

By

Sensex equity Nifty

Mumbai, Nov 18 The benchmark Sensex advanced by 135 points during the early trade on Monday led by PSU bank stocks.

It opened higher at 40,431.08,from its Friday’s close of 40,356.69. The Nifty also added 35.80 pts to trade at 11,931.25.

“Indian markets showed some initial gains aided by continued momentum in telecom stocks over reports of the government considering a floor on tariffs,” said Deepak Jasani of HDFC Securities.

SBI, beneficiary of telecom sector respite and Essar steel resolution, and BPCL surged after FM’s statement of targeting completion of its divestment by March, Jasani added.

Bharti Airtel advanced over 3 per cent to claim the top gainer’s spot followed by State Bank of India, by nearly 2 per cent.

Foreign Portfolio Investors sold Rs 1,008.37 crore worth of stocks on Friday while the Domestic Investors bought scrips worth Rs 537.74 crore.

Yes Bank, Mahindra and Mahindra, ONGC were the top losers during the early trade.

The US markets closed higher as investors remained positive on progress seen in US-China trade talks.

Continue Reading

Business

Saudi Aramco flotation values oil giant at $1.7 trillion

Published

on

Riyadh, Nov 17 Saudi Arabia on Sunday placed a preliminary valuation on state oil company Aramco of between $1.6 trillion and $1.7 trillion.

The company has published an updated prospectus for its initial public offering (IPO), seeking more than $25 billion for the sale of 1.5 per cent of its shares, the BBC reported.

That would make it the world’s biggest IPO, coming from the world’s most profitable company

It is short of the $2 trillion valuation that Crown Prince Mohammed bin Salman was reportedly keen to achieve.

“The base offer size will be 1.5% of the company’s outstanding shares,” the state-owned energy giant said in a statement on Sunday, adding that it set the price range at 30-32 Saudi riyals per share ($8-$8.5).

Individual retail investors, as well as big institutions, will have a chance to buy shares.

Aramco was initially expected to sell some 5 per cent of its shares on two exchanges, with a first listing of 2 per cent on the Kingdom’s stock exchange or Tadawul bourse, and then another 3 per cent on an overseas exchange.

The firm added that there were now no current plans for an international sale.

The Crown Prince is seeking to sell the shares to raise billions of dollars to diversify the Saudi economy away from oil by investing in non-energy industries, the BBC said.

In its prospectus released last week, the company lists a variety of investment risks ranging from terrorist attacks to geopolitical tensions in a region dominated by Saudi-Iran rivalry.

The 600-page prospectus also includes the government’s control over oil output as another potential risk.

After the flotation, Aramco will not list any more shares for six months.

The sale of the company, first mooted four years ago, has been overshadowed by delays and criticism of corporate transparency at Saudi Arabia’s crown jewel.

Aramco last year posted $111 billion in net profit. In the first nine months of this year, its net profit dropped 18 per cent to $68 billion.

Continue Reading

Business

India may soon have personal data protection law

Published

on

By

Repetitive Images

New Delhi, Nov 17 (IANS) India may soon have a law on personal data protection as the government plans to take up the bill during the upcoming winter session of Parliament starting Monday.

Information Technology Minister Ravi Shankar Prasad has already said that the government plans to soon introduce the Personal Data Protection Bill, 2018 in Parliament after public consultations.

The draft bill was released last year and was immediately opposed by several global technology companies. Their contention was that it would affect their business in the country apart from driving cost of operations. The proposals are mostly out of a report submitted by Justice B.N. Srikrishna in July 2018. The final draft of the bill is still not known.

But the draft bill which was made public last year for comments said businesses were required to seek explicit consent for the data they collect on consumers, mandatorily obtain consent from consumers to use their data sparingly and only for the purposes stated, apart from storing sensitive consumer data only within Indian borders. It did not mention what will be sensitive information in legal terms.

In recent times several cases of user privacy intrusion cases have come to light, including WhatsApp data-protection failure and privacy breach, creating a public outrage and debate over data security in the country.

The bill suggests a fine of up to Rs 15 crore or 4 per cent of the firm’s turnover in the case of a breach and setting up of a data protection authority.

Recently at the Commonwealth Law Ministers Conference in Colombo, Prasad said: “In India, we view privacy seriously and informational privacy is also integral to that. It means a person must have control over his data and its commercial usage.”

According to the minister, any data protection law should be technology agnostic, must be based upon the element of free consent, no abuse of consent beyond the permissible limits, requisite data protection authorities, and a fair mechanism for data processing.

In October WhatsApp confirmed that Indian human rights activists and journalists were among those targeted by an Israeli spyware and the government had asked the company to explain the breach that had targeted Indians amongst others.

Those targeted by the WhatsApp hacking in India included human rights activists who were arrested over their alleged involvement in the Bhima-Koregaon Dalit riots near Pune in January last year and some journalists. Of 1,400 affected users, over 20 are academics, lawyers, Dalit activists and journalists from India.


Continue Reading
Advertisement

Most Popular