RBI’s fourth repo rate cut, Pak downgrades diplomatic ties and Jammu and Kashmir

Yesterday, the monetary policy committee of the Reserve Bank of India (RBI) unanimously decided cut its repo rate for the fourth time this year, by 35 basis point. From 5.75%, the key policy rate is now 5.4 % – the lowest it has been in 9 years. Along with this, the RBI also lowered its GDP growth projection from 7 per cent to 6.9 per cent. In this segment, Ishan Bakshi, who writes on the economy for the Indian Express, joins us to talk about the move and what options the government now has to increase consumption and growth in the economy. Next, as Pakistan decides to downgrade diplomatic ties with India and suspend bilateral trade, Shubhajit Roy, who reports on matters of foreign affairs, talks about how this is likely to affect the two countries and in what way it can escalate. And last, over 100 people arrested in Jammu and Kashmir, including political leaders and activists, as they were considered a threat to peace and tranquility in Kashmir.