RBI maintains status quo; cuts growth forecast to 6.7% in FY18

Agencies
October 4, 2017

Mumbai, Oct 4: The Reserve Bank today kept interest rate unchanged as was widely expected in view of upward trend in inflation even as it cut the growth forecast to 6.7 per cent for the current fiscal.

Consequently, the repo rate, at which it lends to banks, will stand at 6 per cent.

The reverse repo, at which RBI borrows from banks will continue to be at 5.75 per cent, it said at the fourth bi-monthly policy review.

In its last review in August it had slashed the benchmark lending rate by 0.25 percentage points to 6 per cent, the lowest in 6 years.

"The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth," RBI said in its fourth policy review of 2017-18.

The six-member monetary policy committee voted 5:1 for the decision, with only Ravindra Dholakia voting for a 0.25 per cent reduction in rates.

The Reserve Bank of India (RBI) said that after a record low in June, inflation is trending up and estimated the headline number to touch 4.6 per cent by the March quarter.

"The MPC (Monetary Policy Committee) decided to keep the policy stance neutral and monitor incoming data closely. The MPC remains committed to keeping headline inflation close to 4 per cent on a durable basis," it said.

On growth, it cut its 2017-18 forecast by gross value added (GVA) basis to 6.7 per cent from 7.3 per cent earlier.

"The loss of momentum in Q1 of 2017-18 and the first advance estimates of kharif foodgrains production are early setbacks that impart a downside to the outlook. The implementation of the GST so far also appears to have had an adverse impact, rendering prospects for the manufacturing sector uncertain in the short-term," RBI said.

The MPC said structural reforms introduced in the recent period will likely be growth augmenting over the medium-to long-term by improving the business environment, enhancing transparency and increasing formalisation of the economy.

Markets were expecting the Monetary Policy Committee to vote for a status quo on the rates at the policy announcement. They also felt that with inflation rising, the RBI is at the end of its rate cutting cycle and may cut it once at best during the remainder of the fiscal.

The review comes amid a heightened fears of a slowdown in growth due to various factors like the demonetisation exercise and the introduction of the indirect taxation reform GST and a shrill call for fiscal boosters from a varied section of economists.

The GDP expansion slowed down for the sixth straight quarter to 5.7 per cent which is a three year low under the new series of computation for the June quarter. However, data released yesterday said the core sector growth came at a 5- month high of 4.9 per cent for August, up from 2.9 per cent for July.

The government has been working on a plan to push up growth, but has not announced any move yet. It cut the excise duty on fuels by Rs 2 in order to minimise the impact of increasing global fuel prices on domestic consumers, a move which heightens the risk of a fiscal slippage.

Breaching the fiscal deficit is also seen as stoking inflation, the Reserve Banks primary objective. The RBI is mandated to keep the headline inflation, which accelerated to 3.36 per cent for August, in the 4-6 per cent band.

Some analysts have been saying inflation has been off the lows and will be pushing up in the second half of the fiscal.

The central bank said it is imperative to reinvigorate investment activity which, in turn, would revive the demand for bank credit by industry as existing capacities get utilised and the requirements of new capacity open up to be financed.

"Recapitalising public sector banks adequately will ensure that credit flows to the productive sectors are not impeded and growth impulses not restrained," it said.

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News Network
November 26,2025

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Bengaluru, Nov 26: Karnataka is taking its first concrete steps towards lifting a three-decade-old ban on student elections in colleges and universities. Deputy Chief Minister D.K. Shivakumar announced Wednesday that the state government will form a small committee to study the reintroduction of campus polls, a practice halted in 1989 following incidents of violence.

Speaking at a 'Constitution Day' event organised by the Karnataka Congress, Mr. Shivakumar underscored the move's aim: nurturing new political leadership from the grassroots.

"Recently, (Leader of the Opposition in Lok Sabha) Rahul Gandhi wrote a letter to me and Chief Minister (Siddaramaiah) asking us to think about restarting student elections," Shivakumar stated. "I'm announcing today that we'll form a small committee and seek a report on this."

Student elections were banned in Karnataka in 1989, largely due to concerns over violence and the infiltration of political party affiliates into campus life. The ban effectively extinguished vibrant student bodies and the pipeline of young leaders they often produced.

Mr. Shivakumar, who also serves as the Karnataka Congress president, said that former student leaders will be consulted to "study the pros and cons" of the re-introduction.

Acknowledging the history of the ban, he added, "There were many criminal activities taking place back then. We’ll see how we can conduct (student) elections by regulating such criminal activities."

The Deputy CM reminisced about his own journey, which began on campus. He recalled his political activism at Sri Jagadguru Renukacharya College leading to his first Assembly ticket in 1985 at the age of 23. "That's how student leadership was at the time. Such leadership has gone today. College elections have stopped," he lamented, adding that for many, college elections were "like a big movement" where leaders were forged.

The move, driven by the Congress high command's push to cultivate young talent, will face scrutiny from academics and university authorities who have, in the past, expressed concern that the return of polls could disrupt the peaceful academic environment and turn campuses into political battlegrounds.

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News Network
November 27,2025

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Authorities at Pakistan’s high-security Adiala Jail in Rawalpindi on Wednesday dismissed speculation about the condition of imprisoned former Pakistan Prime Minister Imran Khan, rejecting rumours that he had been moved out of the facility or was in danger. Officials said Khan was in “good health” and described the viral death claims as “baseless.”

“There is no truth to reports about his transfer from Adiala Jail,” the Rawalpindi prison administration said in a statement, according to Geo News. “He is fully healthy and receiving complete medical attention.”

Amid swirling rumours on social media, Imran Khan’s party, Pakistan Tehreek-e-Insaf (PTI), urged the federal government to issue an official clarification and demanded that authorities allow his family to meet him immediately, Dawn reported.

The frenzy began after Khan’s three sisters called for an impartial probe into what they described as a “brutal” police assault on them and other PTI supporters outside Adiala Jail last week. Soon after, several social media handles circulated unverified claims alleging that Khan had been “killed” inside the prison.

The rumours intensified when a handle named “Afghanistan Times” claimed that “credible sources” had confirmed Khan’s “murder” and that his body had been moved out of the jail — allegations that have not been verified by any credible agency.

Imran Khan, PTI’s patron-in-chief, has been lodged in the Rawalpindi prison since August 2023 in multiple cases. For over a month, an undeclared restriction has prevented family members and senior PTI leaders from meeting him. Khyber-Pakhtunkhwa Chief Minister Sohail Afridi has reportedly been denied access despite making seven attempts.

In a letter to Punjab Police Chief Usman Anwar, Khan’s sisters — Noreen Niazi, Aleema Khan, and Dr. Uzma Khan — said they were “peacefully protesting” outside the jail when police allegedly launched an unprovoked assault after streetlights were switched off.

“At 71, I was seized by my hair, thrown to the ground and dragged across the road,” Noreen Niazi said, alleging that other women present were also slapped and manhandled.

Adiala Jail officials reiterated that speculation over Imran Khan’s health was unfounded and insisted that his well-being was being ensured, Geo News reported.

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News Network
November 22,2025

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The Israeli regime’s forces have killed two Palestinian children in the Gaza Strip every day since the ceasefire began in early October, UNICEF has warned.

The UN children’s agency said on Friday that Israeli forces continue to attack Palestinians in Gaza even though the agreement was meant to stop the killing.

“Since 11 October, while the ceasefire has been in effect, at least 67 children have been killed in conflict-related incidents in the Gaza Strip. Dozens more have been injured. That is an average of almost two children killed every day since the ceasefire took effect,” UNICEF spokesperson Ricardo Pires said in Geneva, reminding that each number in the statistics represents a child whose life had ended violently.

“These are not statistics,” he said. “Each child had a story, a family, and a future that was stolen from them.”

Data from Palestinian factions, human rights groups, and government bodies recorded since the US-brokered ceasefire deal went into effect on October 10 show that Israeli forces have carried out numerous attacks, each constituting a separate ceasefire violation.

UNICEF teams say they repeatedly continue to witness heart-wrenching scenes of fearful Palestinian children sleeping outdoors with amputated limbs, while others live as orphans in flooded, makeshift shelters.

“I saw this myself in August. There is no safe place for them. The world cannot normalize their suffering,” Pires said, lamenting that the UN could “do a lot more if the aid that is really needed was entering faster.”

The UNICEF spokesperson warned that with the advent of winter, the risks for hundreds of thousands of displaced children will increase.

He warned, “The stakes are incredibly high” for children as winter acts as a threat multiplier, where children have no heating, no insulation, and few blankets. He said respiratory infections rise.

“Too many children have already paid the highest price,” Pires said. “Too many are still paying it, even under a ceasefire. The world promised them it would stop and that we would protect them.”

“Now we must act like it,” the UNICEF spokesperson added.

Since the Israeli regime launched its genocidal war against Palestinians in Gaza in October 2023, it has killed nearly 70,000 people in the territory, most of them women and children, and injured over 170,000 more, while reducing most of the structures in the enclave to rubble.

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