Interest rate cut today? 10 things to bear in mind

December 7, 2016

New Delhi, Dec 7: Today, the Reserve Bank of India (RBI) will make its first monetary policy review announcement since high value notes were scrapped on November 8. The announcement is expected at 2:30 pm. Here are 10 things to bear in mind ahead of the announcement.

Interest
1. Most analysts expect the RBI to cut the repo rate at which it lends money to banks - by 25 basis points (bps) to six percent. If that happens, the interest rate will be the lowest it has been in six years.

2. Some analysts expect an even deeper 50 bps cut to combat the several cash crunch following the November 8 decision to scrap Rs 500 and Rs 1,000 notes.

3. The last rate cut was in October, when the RBI cut the repo rate by 25 to 6.25 per cent.

4. While the rate cut will raise concerns about inflation, analysts see the cut also as a "growth supportive stance to offset downside risks to growth from the demonetisation effort," as Radhika Rao, an economist with DBS Bank, wrote in a note, according to Reuters.

5. A cut in the repo rate should ideally bring down banks' borrowing costs, eventually leading to lower loan rates for companies and individuals.

6. Therefore, a rate cut is expected to help revive private investments in an atmosphere where short-term growth is likely to be impacted.

7. The country's economy grew 7.3 percent between July and September, the fastest rate in the world for an economy of its size. November inflation was at 4%, which HDFC Bank termed "comfortable territory".

8. Brokerage firm Bank of America Merrill Lynch meanwhile cut its GDP growth forecast to 6.9 per cent from the earlier 7.7 per cent, saying that disruption to economic activity caused by demonetisation will be 0.3-0.5 per cent of GDP every month.

9. Merrill Lynch also said the RBI will now likely wait until April 2017 for the next rate cut.

10. Ahead of today's rate cut announcement,banks had already begun to reduce interest rates.

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December 19,2025

Mangaluru: In a decisive move to tackle the city’s deteriorating sanitation infrastructure, the Mangaluru City Corporation (MCC) has announced a massive ₹1,200 crore action plan to overhaul its underground drainage (UGD) network.

The initiative, spearheaded by Deputy Commissioner and MCC Administrator Darshan HV, aims to bridge "missing links" in the current system that have left residents grappling with overflowing sewage and environmental hazards.

The Breaking Point

The announcement follows a high-intensity phone-in session on Thursday, where the DC was flooded with grievances from frustrated citizens. Residents, including Savithri from Yekkur, described a harrowing reality: raw sewage from apartments leaking into stormwater drains, creating a "permanent stink" and turning residential zones into mosquito breeding grounds.

"We are facing immense difficulties due to the stench and the health risks. Local officials have remained silent until now," one resident reported during the session.

The Strategy: A Six-Year Vision

DC Darshan HV confirmed that the proposed plan is not a temporary patch but a comprehensive six-year roadmap designed to accommodate Mangaluru’s projected population growth. Key highlights of the plan include:

•    Infrastructure Expansion: Laying additional pipelines to connect older neighborhoods to the main grid.

•    STP Crackdown: Stricter enforcement of Sewage Treatment Plant (STP) regulations. While new apartments are required to have functional STPs, many older buildings lack them entirely, and several newer units are reportedly non-functional.

•    Budgetary Push: The plan has already been discussed with the district in-charge minister and the Secretary of the Urban Development Department. It is slated for formal presentation in the upcoming state budget.

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December 19,2025

Mangaluru: Public transport in Mangaluru is set for a state-led transformation as the government moves to deploy 100 new electric govt buses to replace unreliable private services. The initiative aims to provide a dependable alternative to private operators who have been frequently "cutting trips," leaving thousands of commuters stranded.

The announcement was made by Deputy Commissioner and MCC Administrator Darshan HV during a public phone-in session. The move specifically targets routes where private bus service has become erratic, ensuring that citizens no longer have to rely on a fluctuating private sector for their daily commute.

Restoring the Govt Presence

The transport crisis was brought to the forefront by Ramayya, a resident of Bajal, who highlighted a growing trend of private buses skipping morning and night trips. With the previous KSRTC (govt) services discontinued, residents have been left without a fallback option.

To fix this, the DC confirmed that the PM-eBus Sewa Scheme will bring 100 government-owned electric buses to the city:

•    Phased Deployment: The first 50 of the new 100 government buses are scheduled to arrive by March 2026.

•    State Infrastructure: Two new government depots, including one at Mudipu, are being prepared for operations.

•    Recruitment: The state has already begun training a new batch of government bus drivers to ensure the fleet is operational the moment it arrives.

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December 19,2025

Mangaluru: The Mangaluru CEN police have arrested a 23-year-old man for allegedly posting provocative and misleading content on an Instagram page named “mr_a_titude”, targeting the Bajpe police.

Mangaluru Commissioner of Police Sudheer Kumar Reddy C H identified the arrested as Abhishek M, a resident of Katipalla in Mangaluru.

A case has been registered at the Bajpe Police Station under Sections 353(1)(c), 353(2), 56, and 57 read with Section 189 of the Bharatiya Nyaya Sanhita (BNS) in connection with the post.

According to police, the accused uploaded a photograph of a hotel on the Instagram page and alleged that accused persons in a murder case under the Bajpe police jurisdiction were being given “royal treatment” by the police, including being served beef meals daily from the hotel.

The post further accused the police of supporting criminals, misusing their authority, and betraying public trust. Police said the content was provocative in nature and aimed at inciting public outrage against the police.

Following the post, a case was registered at the Bajpe police station, and further investigation was transferred to the CEN police station.

Police records indicate that the accused has a criminal history, with multiple cases registered against him, including murder, attempt to murder, assault, and robbery at the Surathkal Police Station, and one case at the Kaup Police Station.

The Commissioner said the accused was traced and arrested using technical evidence.

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