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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CJI calls for 'unified judicial policy', use of technology to converge practices across courts
Jaisalmer (PTI): Pushing for a "unified judicial policy", Chief Justice of India Surya Kant on Saturday said technology can help align standards and practices across courts, creating a "seamless experience" for citizens, regardless of their location.
He said high courts -- due to the federal structure -- have had their own practices and technological capacities, and "regional barriers" can be broken down with technology to create a more unified judicial ecosystem.
Delivering the keynote address at the West Zone Regional Conference in Jaisalmer, Kant proposed the idea of a "national judicial ecosystem" and called for an overhaul of India's judicial system with the integration of technology.
"Today, as technology reduces geographical barriers and enables convergence, it invites us to think of justice not as regional systems operating in parallel, but as one national ecosystem with shared standards, seamless interfaces, and coordinated goals," he said.
He emphasised how the role of technology in the judiciary has evolved over time.
"Technology is no longer merely an administrative convenience. It has evolved into a constitutional instrument that strengthens equality before the law, expands access to justice, and enhances institutional efficiency," he said, highlighting how digital tools can bridge gaps in the judicial system.
Kant pointed out that technology enables the judiciary to overcome the limitations of physical distance and bureaucratic hurdles.
"It allows the judiciary to transcend physical barriers and bureaucratic rigidities to deliver outcomes that are timely, transparent and principled," he said, adding that the effective use of technology can modernise the delivery of justice and make it more accessible to citizens across the country.
The CJI called for implementing a "unified judicial policy".
He said India's judicial system has long been shaped by its federal structure, and different high courts have their own practices and technological capacities.
"India's vast diversity has led to different high courts evolving their own practices, administrative priorities and technological capacities. This variation, though natural in a federal democracy, has resulted in uneven experiences for litigants across the country," he said.
Kant underscored that predictability is crucial for building trust in the judicial system.
"A core expectation citizens place upon the courts is predictability," he said, adding that citizens should not only expect fair treatment but also consistency in how cases are handled across the country.
He pointed to the potential of technology in improving predictability.
"Technology enables us to track systemic delays and make problems visible rather than concealed," he said.
By identifying areas where delays occur, such as in bail matters or cases involving certain types of disputes, courts can take targeted action to address these issues and improve efficiency, Kant said.
The CJI explained that data-driven tools could identify the reasons behind delays or bottlenecks, allowing for faster, more focused solutions.
"Technology enables prioritisation by flagging sensitive case categories, monitoring pendency in real time and ensuring transparent listing protocols," he said.
Justice Surya Kant also discussed the importance of prioritising urgent cases where delays could result in significant harm. He highlighted his recent administrative order that ensures urgent cases, such as bail petitions or habeas corpus cases, are listed within two days of curing defects.
"Where delay causes deep harm, the system must respond with urgency," he stated, explaining that technology can help courts identify and expedite such cases.
Kant also raised the issue of the clarity of judicial decisions.
He noted that many litigants, despite winning cases, often struggle to understand the terms of their judgment due to complex legal language.
"Although the orders had gone in their favour, they remained unsure of what relief they had actually secured because the language was too technical, vague or evasive to understand," he said.
He advocated for more uniformity in how judgments are written.
"A unified judicial approach must therefore extend to how we communicate outcomes," he said.
The CJI also discussed the role of AI and digital tools in improving case management. He pointed to the potential of AI-based research assistants and digital case management systems to streamline judicial processes.
"Emerging technological tools are now capable of performing once-unthinkable functions. They can highlight missing precedent references, cluster similar legal questions, and simplify factual narration," he said, explaining how these technologies can help judges make more consistent decisions.
He also highlighted tools like the National Judicial Data Grid and e-courts, which are already helping to standardise processes like case filings and tracking.
Kant reiterated that the integration of technology into the judicial process is not just about improving efficiency but about upholding the integrity of the system and strengthening public trust.
"The measure of innovation is not the complexity of the software we deploy, but the simplicity with which a citizen understands the outcome of their case and believes that justice has been served," he said.
