India central bank unfazed by rupee's record slide

India central bank unfazed by rupee's record slide

India central bank unfazed by rupee's record slide

In the Forex market, the Indian currency opened at 73.56 against the dollar and after sustaining its strength for some time it ultimately ended up crossing the 74-mark.

The rupee crashed below the 74 mark against the dollar after the Reserve Bank of India (RBI) has made a decision to keep the repo rate unchanged at 6.5 per cent. Subsequently, the RBI raised the repo rate or short term lending rate by another 25 basis points in August policy meet. Authorities have moved to ring-fence Infrastructure Leasing & Financial Services, while the RBI has pledged to inject $5 billion into the system through bond purchases as it tries to ease the liquidity squeeze.

Taking all these factors into account, the committee predicted that both growth and inflation will continue well into 2019-20, where inflation is projected at a 4.8%, depending on a few domestic and worldwide market forces. And the decision it makes "will highlight the RBI's bias to the market in terms of it objective and mandate". The MPC also kept the reverse repo rate the same at 6.25%.

"In its monetary policy today, RBI has taken the unexpected stance of keeping the repo rates unchanged. They are saying there are ways in which the situation could become worse and they would not hesitate to retaliate if the situation worsens".

Former Classmate ‘Shocked’ That Kavanaugh Testified ‘Devil’s Triangle’ Wasn’t About Sex
Ramirez and nine others were questioned during the FBI's week-long investigation into the accusations against Kavanaugh. Kavanaugh has aggressively denied all misconduct allegations and also denied ever being "blackout" drunk.

The country's GDP growth is expected to go past 7 percent this year, but the downside to raising rates may be a slowdown in economic growth.

"While the MPC will look through the statistical impact of HRA revisions, there is need to be watchful for any second-round effects on inflation", the monetary policy committee said in its fourth bi-monthly policy statement.

Going forward, however, Patel warned of risks to the upside in the form of higher crude oil prices and an escalation in the tariff war.

Since the last MPC meeting in August, the rupee has fallen 7 percent and Brent crude oil prices have risen more than 15 percent.

Vettel shares blame for Ferrari tyre gaffe
Rivals McLaren, who dumped Honda for Renault after three frustrating years, meanwhile could do no better than 18th and 19th. It was a disappointing afternoon for Red Bull's Daniel Ricciardo who couldn't set a time because of a loss of power.

'Expectations are building for an aggressive rate response, but the policy committee's inflation mandate and the current benign trend, backs the case for a measured 25 bps rate hike, ' Radhika Rao, an economist at DBS wrote in a note on Thursday.

"The rupee has extended losses as the RBI monetary policy meeting has clearly disappointed the street".

Global oil prices have been on a boil, hurting the rupee, as India imports almost 80 per cent of its crude requirements.

However, there will likely be further rate increases ahead.

Saudi journalist killed at consulate: Turkish sources
According to Khashoggi's fiancee, a Turkish woman identified only as Hatice A., he went to the consulate and never re-emerged. He has not been heard from since.

"Thirdly, volatility in global financial markets continues to impart uncertainty to the inflation outlook".

Related news