RBI hikes repo rate by 25 basis points to 6.5 %
Mumbai (PTI): The Reserve Bank on Wednesday hiked key benchmark policy rate by 25 basis points to 6.5 per cent, citing sticky core inflation.
This is the sixth time interest rate has been hiked by the Reserve Bank of India (RBI) since May last year, taking the total quantum of hike to 250 basis points.
Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) by a majority decided to raise the policy repo rate by 25 basis points and keep a 'strong vigil' on inflation outlook.
"Policy rate at 6.5 per cent still trails the pre-pandemic level," Das said, adding that core inflation will remain sticky.
Core inflation generally refers to inflation in manufactured goods.
The governor said the inflation will moderate in the next fiscal but remain above the 4 per cent level. The RBI is mandated to keep inflation at 4 per cent with a margin of 2 per cent on either side.
For the next fiscal, the RBI projected a growth rate of 6.4 per cent. In the latest Economic Survey of the finance ministry, growth projection was 6-6.8 per cent for 2023-24.
According to Das, the retail inflation will average 6.5 per cent in the current fiscal and moderate to 5.3 per cent in 2023-24.
Indian economy has remained resilient demand global headwinds, Das said.
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JDS launches attack on state government over unpaid salaries of ambulance drivers
Bengaluru: The Janata Dal (Secular) (JDS) has attacked the state Congress government for its failure to pay the salaries of 108 ambulance drivers, despite their crucial role in emergency healthcare services. The criticism comes amidst growing discontent over the government's inability to fulfil its financial obligations.
In a scathing statement, the JDS accused the government of prioritising popularity over the welfare of its citizens. Highlighting the plight of the ambulance drivers, who have not received their salaries for three months, the party condemned the administration's lack of accountability.
"The state Congress government is more addicted to popularity than people," remarked the JDS spokesperson. "Irresponsibility is more evident than drought management. It's a disgrace that these drivers, who risk their lives to save others, have been neglected in this manner."
The issue gained further traction after Chief Minister Siddaramaiah made a bold declaration during a speech in Bagalkot, promising to resign if any state government employee reported unpaid wages. JDS immediately seized upon this statement, calling for the CM's resignation in light of the unpaid salaries of the ambulance drivers.
"If even a single government employee of the state comes to me and says that his salary has not been paid, I will retire from politics," CM Siddaramaiah had declared.
Responding to the CM's challenge, the JDS demanded immediate action to rectify the situation and ensure that the ambulance drivers receive their overdue wages without further delay.
