Economy
RBI monetary policy panel warns of upside risks to inflation
Citing upside risks to inflation from price pressures as the main reason for keeping its key interest rate unchanged earlier this month, the RBI's monetary policy committee (MPC) said there is room for banks to further cut interest rates, minutes of the MPC meeting on April 5-6, released on Thursday, showed.
 
At its first bi-monthly policy review of the 2017-18 fiscal, the RBI preferred to maintain status quo on its repurchase (repo) rate, or the short-term lending rate it charges on borrowings by commercial banks, saying it awaited further macroeconomic data before deciding on any changes. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 
"After moderating continuously over the last six months to a historic low, retail inflation measured by year-on-year changes in the consumer price index (CPI) turned up in February to 3.7 per cent," according to the minutes of the MPC meeting. 
 
"While food prices bottomed out at the preceding month's level, base effects pushed up inflation in this category. Importantly, inflation excluding food and fuel has exhibited persistence and has been significantly above headline inflation since September 2016," it said. 
 
Although committe member and RBI Executive Director Michael Patra favoured an increase in the repo rate by 25 basis points as a pre-emptive move to check inflationary pressures, at the end the six-member MPC unanimously decided to maintain status quo.
 
In the monetary policy statement, the RBI said risks are evenly balanced around the inflation trajectory at the current juncture. "There are upside risks to the baseline projection," it said. 
 
"Inflation developments have to be closely and continuously monitored, with food price pressures kept in check so that inflation expectations can be re-anchored. At the same time, the output gap is gradually closing. Consequently, aggregate demand pressures could build up, with implications for the inflation trajectory," it added. 
 
RBI Governor Urjit Patel told the MPC that "the outlook for inflation calls for close vigilance" and there is room for banks to further cut interest rates. 
 
"There is still room for banks to cut lending rates. For efficient transmission, it is important that interest rates on small savings are not out of line with interest rates on other comparable instruments in the financial system," Patel said. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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SC permits NDMC to e-auction Taj Mansingh Hotel
New Delhi, The Supreme Court on Thursday allowed the New Delhi Municipal Council to go ahead with the e-auction of the property housing the iconic Taj Mansingh Hotel here, currently run by Tata Group's Indian Hotels Company Ltd. (IHCL).
 
An apex court bench of Justice Pinaki Chandra Ghose and Justice Rohinton Fali Nariman said the IHCL will have six months to vacate the building -- known as Taj Mansingh -- in case the New Delhi MUnicipal Council (NDMC) does not succeed in its e-auction. 
 
The court said the NDMC will keep in mind that the IHCL has an unblemished track record in hotel management. 
 
Appearing for the IHCL, senior counsel Harish Salve told the court that the proposed auction was not right as they have certain contractual rights for lease renewal.
 
Pressing for the right of first refusal if the property housing Taj Mansingh was to go under the hammer, Salve told the court that at some point "we must get renewal opportunity as our track record has been unblemished". 
 
The IHCL had challenged the Delhi High Court's October 27 order dismissing its plea against the auction of the property by the NDMC.
 
The apex court had ordered for a status quo on November 21, 2016,
 
Earlier, a division bench of the Delhi High Court had reiterated the September 25 single-judge order that dismissed an IHCL suit to renew its licence and upheld the NDMC's decision to auction the property.
 
The property, owned by the NDMC, was given to IHCL on a 33-year lease that ended in 2011. The IHCL has since been managing the property on several extensions it has got from the municipal council.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Investments via P-Notes stood at Rs 1.78 lakh crore at March-end
Chennai, Investments through Participatory Notes or P-Notes route in the Indian stock markets touched Rs 178,437 crore at the end of March 2017, the market regulator Securities and Exchange Board of India (SEBI) said on Thursday.
 
According to the data released by SEBI, total investments in equity, debt and derivatives via P-Notes shot up to Rs 178,437 crore at the end of March 2017, up from Rs 170,191 crore at the end of February this year.
 
The investment figure via P-Notes route at the end of January 2017 was Rs 175,088 crore.
 
P-Notes are instruments issued by Foreign Institutional Investors (FII) to overseas investors, who want to invest in the Indian stock markets without registering themselves with the SEBI.
 
According to SEBI data, the investments in equity and debt excluding derivatives at the end of March 2017 stood at Rs 124,277 crore, with equity alone attracting Rs 111,803 crore.
 
The P-Note investments in debt and derivatives at March-end stood at Rs 12,475 crore and Rs 54,160 crore, respectively.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

RAVI RAM PV

6 months ago

Everyone who matters, is interested in keeping this farce of p-notes going. Suits many in 'suits'.

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