Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • Nepal protests
  • Nepal Protests Live
  • Vice-presidential elections
  • iPhone 17
  • IND vs PAK cricket
  • Israel-Hamas war
fp-logo
Weakening domestic growth impulses prompted RBI governor Shaktikanta Das to go for rate cut: Minutes of MPC meet
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Business
  • Weakening domestic growth impulses prompted RBI governor Shaktikanta Das to go for rate cut: Minutes of MPC meet

Weakening domestic growth impulses prompted RBI governor Shaktikanta Das to go for rate cut: Minutes of MPC meet

Press Trust of India • April 18, 2019, 19:40:06 IST
Whatsapp Facebook Twitter

On 4 April, the RBI had reduced the repo rate, or the rate at which it lend to banks, by 25 basis points to 6 percent — the lowest level in one year — on softening inflation.

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
Weakening domestic growth impulses prompted RBI governor Shaktikanta Das to go for rate cut: Minutes of MPC meet

Mumbai: Weakening of domestic growth impulses and global slowdown prompted Reserve Bank of India (RBI) governor Shaktikanta Das to vote for a 25 basis points cut in interest rate announced earlier this month, minutes of the Monetary Policy Committee (MPC) meeting showed on Thursday. However, his deputy Viral Acharya had favoured status quo in the key lending rate (repo), arguing that the Reserve Bank should wait for “some more time” for additional data before taking call on reduction in rate. Another external expert on the six-member MPC Chetan Ghate too had voted against reduction in the repo rate. Four of the six MPC members had voted in favour of a 25 basis points reduction in the policy rate. [caption id=“attachment_5717441” align=“alignleft” width=“380”]File image of RBi governor Shaktikanta Das. News18 File image of RBI governor Shaktikanta Das. News18[/caption] On 4 April, the RBI had reduced the repo rate, or the rate at which it lend to banks, by 25 basis points to 6 percent — the lowest level in one year — on softening inflation. It was the second rate cut in a row. The central bank, however, kept monetary policy stance ’neutral’ over uncertainty over monsoon. As per the minutes, Das said there has been further weakening of domestic growth impulses, with global growth slowdown posing major headwinds to India’s exports since the last policy in February 2019. During the three-day meeting of the MPC, he opined that high frequency indicators suggest a further loss of pace in growth. Private consumption has been weakening as reflected in deceleration in the growth of passenger car sales and domestic air passenger traffic, weak performance of consumer durables and non-durables, and continuing contraction in non-oil non-gold imports. Das further said investment demand was losing traction and a deceleration in exports may further impact investment activity. “With the inflation outlook looking benign and headline inflation expected to remain below target in the current year, it becomes necessary to address the challenges to sustained growth of the Indian economy. “Hence, I vote for reducing the policy repo rate by 25 basis points,” Das had said, according to the minutes. During the meeting, the governor also said the RBI will continue to watch the evolving growth and inflation dynamics and act in time and act decisively while ensuring price stability on an enduring basis in pursuance of its mandate under the RBI Act. Acharya, who voted against a rate cut, was of the opinion that signals from the domestic economy “are mixed”. Capacity utilisation continues to improve which augurs well for future investment, and services growth remains robust. However, consumption demand shows signs of weakness. “On balance, therefore, notwithstanding signs of weakness in growth evinced in high frequency economic indicators, I am inclined to wait for some more time for incoming data to resolve several important uncertainties that will shape the Indian economy in the coming one or two years,” he had said. As per the minutes, Ghate had opined that frequent changes in policy rates and stance runs the risk of introducing uncertainty and volatility “because of our own actions”. He had advocated status quo in policy rate. RBI executive director and MPC member Michael Debabrata Patra too had advocated a rate cut, along with external members Pami Dua and Ravindra Dholakia.

Tags
Inflation RBI NewsTracker Repo rate Monsoon RBI Governor global slowdown Interest rate cut Shaktikanta Das MPC investment demand
End of Article
Latest News
Find us on YouTube
Subscribe
End of Article

Impact Shorts

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

The Tata Harrier EV and Mahindra XEV 9e are new electric SUVs in India. The Harrier EV has a modern, familiar design, while the XEV 9e features a bold, striking look. They cater to different preferences: the Harrier EV for subtle elegance and the XEV 9e for expressive ruggedness.

More Impact Shorts

Top Stories

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV