RBI likely to keep interest rate unchanged on Dec 5
New Delhi, Dec 2 : The Reserve Bank is likely to maintain status-quo on interest rate in the upcoming monetary policy review on December 5 despite moderation in economic growth and easing inflation, opined experts.
After back-to-back hikes since June, the RBI had kept interest rates unchanged in the previous policy review in October, surprising markets that had expected a rate hike to support the tumbling rupee and combat inflationary pressures from high oil prices.
The repo rate, at which RBI lends to other banks, was left unchanged at 6.50 per cent.
The six-member Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, will meet for three days starting December 3 for the fifth bi-monthly monetary policy review of the current financial year.
The MPC's decision will be announced in the afternoon of December 5.
Since the previous policy announcement, rupee has appreciated against the US dollar and moved above the psychologically crucial mark of 70.
Global crude oil prices too have softened significantly, slipping below USD 60 per barrel from USD 86.
However, India's economic growth slowed to 7.1 per cent in the September quarter after peaking to an over two-year high in the first three months of this fiscal, as consumption demand moderated and farm sector displayed signs of weakness.
The growth in Gross Domestic Product (GDP) in July-September is the lowest in three quarters but better than 6.3 per cent in the same period of the previous year.
The Indian economy had grown by 8.2 per cent in the first quarter of the current fiscal year that began in April, according to data released by the Central Statistics Office (CSO).
Kotak Research said the MPC in its last policy had estimated inflation at 3.9-4.5 per cent in the second half of the fiscal and 4.8 per cent in first quarter of next year.
It expects the inflation at 2.9-4.3 per cent in the second half of the fiscal and 4.5 per cent in first quarter of 2019-20.
"The softer-than-expected inflation prints are on the back of benign food inflation, especially as most kharif crop prices remain well below the MSP prices.
"While softer retail fuel prices will push core inflation lower, there will be significant divergence from headline inflation mainly on the back of higher prices of education and health," Kotak Research said, adding that it expects RBI to maintain status-quo.
Devendra Kumar Pant, Chief Economist, India Ratings and Research (Fitch Group), said 2018-19 may still end up with a GDP growth of 7.3 per cent and "RBI may get the much needed elbow room to keep the policy rate unchanged in the forthcoming bi monthly policy review on 5 December 2018".
Retail inflation based on Consumer Price Index (CPI) fell to a one-year low of 3.31 per cent in October on the back of cheaper kitchen staples, fruits and protein-rich items, as per latest available data.
It was 3.7 per cent in September 2018 and 3.58 per cent in October 2017. The retail inflation number is the lowest since September 2017, when it touched 3.28 per cent.
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Questioning religious practices will break religion, civilisation: SC in Dawoodi Bohras case
New Delhi (PTI): The Supreme Court on Thursday remarked that if individuals start questioning certain religious practices or matters of religion before a constitutional court then there will be hundreds of petitions questioning different rituals, leading to the breaking of religions and the civilisation.
The nine-judge Constitution bench is hearing petitions related to discrimination against women at religious places, including the Sabarimala temple in Kerala, and on the ambit and scope of the religious freedom practised by multiple faiths, including Dawoodi Bohras.
The bench comprises Chief Justice of India (CJI) Surya Kant and Justices B V Nagarathna, M M Sundresh, Ahsanuddin Amanullah, Aravind Kumar, Augustine George Masih, Prasanna B Varale, R Mahadevan and Joymalya Bagchi.
The Central Board of Dawoodi Bohra Community filed a PIL in 1986 seeking the setting aside of a 1962 judgment, which had struck down the Bombay Prevention of Excommunication Act, 1949 -- this law made excommunication of any community member illegal.
The 1962 Constitution bench judgment said, "It is evident from the religious faith and tenets of the Dawoodi Bohra community that the exercise of the power of excommunication by its religious head on religious grounds formed part of the management of its affairs in matters of religion and the 1949 Act in making even such excommunication invalid, infringed the right of the community under Article 26(b) of the Constitution."
Senior advocate Raju Ramachandran, representing a group of reformist Dawoodi Bohras, submitted that a practice which is conducted in response to secular and social actions of an individual cannot be the subject of Constitutional protection under Article 25 of the Constitution and consequently cannot be a ‘matter of religion’ under Article 26 of the Constitution.
Ramachandran told the court that a practice which may have a religious aspect but also significantly and adversely impacts fundamental rights is not immune to restriction under Article 25 of the Constitution or Article 26 of the Constitution.
Responding to the submission, Justice Nagarathna said that if everybody starts questioning certain religious practices or matters of religion before a constitutional court, then "what happens to this civilisation where religion is so intimately connected with the Indian society".
"There will be hundreds of petitions questioning this right that right, opening of the temple, and the closure of the temple. We are conscious of this," she said.
Adding to the response, Justice Sundresh said, "Every religion will break and every constitutional court will have to be closed.
"If the dispute between two entities are allowed then everybody will question everything. In your case there may be a civil wrong committed to you but in another case, another member will say I don't agree. It is regressive. To what extent can we go in a country like ours which is progressive and on the move is the question," he said.
Justice Nagarathna went on that what sets apart India from any other region is that "we are a civilisation" despite having so many pluralities and diversities?
Asserting that diversity is the country's strength, she added, "One of the constants in our Indian society is the relationship of human beings -- man, woman and child -- with the religion."
"Now, how a religious practice or a matter of religion is questioned, where it is questioned, whether it can be questioned, whether it has to be a question within a denomination for a reform or whether the state will have to do or you want the court to adjudicate upon all these aspects. This is troubling us.
"What we lay down, is for a civilisation that is India. India must progress despite all its economy, everything there is a constant in us. We can’t break that constant. That is what is troubling us ," she said.
Ramachandran replied that India is a civilisation under the Constitution and therefore nothing which goes against the grain of constitution can be continued in a civilised society.
He said that's where court's task come in and "it can't throw hands" and say there will be so many petitions.
