Revenue secretary Shaktikanta Das too welcomed the lower rates and said it would help business as well as prompt people to take housing and consumer loans that in turn would boost demand and growth.
Oil prices have firmed up in recent weeks, and significant strengthening will alter the inflation outlook.
There are three distinct features in the latest rate cut. One, this is the second “out of policy” cut, after the surprise cut in January.
In a country like India, inflation targeting could create anti-farmer policy bias.
A reformist budget was tripped up by short-run pressures.
The proposed Indian Financial Code by the FSLRC had suggested reviewing the roles of the various financial sector regulators.
The target for lending to the agriculture sector has been retained at 18 per cent of ANBC.
For the budget to succeed, government needs to build institutional capacity to carry through proposed public investment, step up divestment.
The central bank will have to commit to keeping inflation below 6 per cent.
The decision to cap free ATM transactions has been challenged in Delhi High Court, Jaitley said.
Observing that democratic accountability is very strong in India, Rajan says ‘we may have a long way to go’.
Banks readily borrow from RBI at the policy rate but then lend that money out at a high rate…
The CBI is currently probing a multi-crore chit-fund scam in the state.
Last month, the ED had summoned PIA to “explain” the purchase of the properties and submit documents pertaining to the case.
Forex reserves have been steadily rising over the last one year on the back of aggressive dollar purchases by the RBI from the market.