RBI cuts policy rate by 25 basic points to 6.25%, first reduction in five years
Mumbai (PTI): The RBI under new Governor Sanjay Malhotra on Friday cut interest rate for the first time in nearly five years as the central bank pivoted the policy stance to support a shuttering economy.
The 25 basis points rate cut to 6.25 percent comes after last rate reduction in May 2020. The last revision of rates happened in February 2023 when the policy rate was hiked by 25 basis points to 6.5 percent.
The Monetary Policy Committee (MPC) unanimously decided to slash policy rate by 25 basis points to 6.25 percent, Malhotra said.
The interest rate cut comes within a week of Finance Minister Nirmala Sitharaman in Budget 2025-26 providing biggest ever tax break to the middle class to boost consumption after the economy has slowed to its lowest pace since the pandemic.
The rate increase cycle was paused in April 2023 after six consecutive rate hikes, aggregating to 250 basis points since May 2022. The last rate hike was done by RBI in February 2023.
Post Budget, the Finance Ministry made a case for rate cut by saying that fiscal and monetary policy should work in tandem.
It was an indication that the RBI should cut rate as the Union Budget has announced several measures including income tax relief.
Earlier this week, Finance Secretary Tuhin Kanta Pandey had said the government has taken measures to lower fiscal deficit and delivered a non-inflationary Budget, and hoped that the RBI’s monetary policy will work in tandem with fiscal policy to support growth.
The Budget 2025-26 announced slew of measures including significant income tax cuts for the middle class, benefiting 1 crore tax payers.
Besides, the government has bettered its fiscal deficit projections for the current fiscal as well as the next. The fiscal deficit for FY25 has been pegged at 4.8 per cent of GDP, lower than budgeted 4.9 percent, while for FY26 the deficit is projected at 4.4 percent, lower than what was given in the consolidation roadmap.
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Bihar: Over 150 children fall ill after consuming 'mid-day meal' in Saharsa
Saharsa (PTI): More than 150 children were taken ill after allegedly consuming food that was part of the mid-day meal in a school in Bihar’s Saharsa district, a senior official said on Thursday.
The incident occurred at a middle school in Baluaha village of the district.
The official said that 115 children were undergoing treatment at the Sadar Hospital, while around 50 students were admitted to Mahishi Public Health Centre.
“We received information that several children fell ill after consuming the mid-day meal in Baluaha. The children were initially treated at the primary health centre, but later, many were referred to the Sadar Hospital,” Saharsa District Magistrate Deepesh Kumar told reporters.
“According to doctors, the health condition of the children has improved, but they will be kept under observation for some time. There is no need to panic. Some kids are having mild fever. They are being treated accordingly,” Kumar said.
Meanwhile, family members of some children claimed that a snake was found in the container in which cooked pulses was stored at the school.
Of the 545 students present in the school, 200 had already eaten their meals by the time the snake was spotted, and later complained of stomach ache and vomiting, they said.
Regarding the claims, the DM said food samples have been collected from the school.
“We will be able to comment on this only after the results of the tested samples arrive,” he said.
