RBI cuts interest rates for third time this year to boost growth
Mumbai: Slashing benchmark lending rates for the third time this year, the Reserve Bank of India cut its repo rate by 0.25 per cent Thursday and said its future monetary policy stance will be more accommodative.
Amid concerns of a slow down in the economy, the central bank lowered its gross domestic product (GDP) forecast to 7 per cent for the current fiscal from 7.2 per cent projected earlier.
The repo rate, at which the the central bank lends to the system, will come down to 5.75 per cent after the cut.
While marginally increasing its inflation projection to 3-3.1 per cent for the first half of the fiscal year 2019-20, which is within the comfort range of 2-6 per cent set by the government, RBI cut the GDP growth targets sharply to 7 per cent for FY20 on weak global scenario and dip in private consumption.
"The MPC (monetary policy committee) notes that growth impulses have weakened significantly A sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern," read the policy resolution.
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We received request; will decide soon whether to support TVK: Thirumavalavan
Chennai (PTI): VCK leader Thol Thirumavalavan on Thursday said that his party received a request from TVK for support and the high-level committee of his party will decide whether to support the Vijay-led party to form the government.
The TVK won 108 seats in the 234-member Assembly and emerged as the single largest party. Vijay will have to resign from one of the two constituencies he has won.
Though the Congress party, which has five MLAs, has extended support to TVK, the actor-politician-led party was still short of as many seats to touch the magic number of 118, the majority mark in the 234-member House.
"We received the request letter from TVK. We are thankful for that. We have not ignored his (Vijay's) request. We have a procedure. Therefore, our party's high-level committee will decide soon. We are going to discuss the merits and demerits of our position," the VCK leader told reporters here.
With regard to the delay in the governor's call to the TVK, which is the single largest party, to form the government, Thirumavalavan requested the governor to invite Vijay to form the government. "It is a constitutional right and people's verdict," he added.
Asserting that the governor cannot say that Vijay should hold 118 MLAs' support now itself to form the government, he said that after taking over power, Vijay has to prove an absolute majority only on the floor of the Assembly.
