AFA CURRENT AFFAIRS ANALYSIS- 08/02/2019
RBI cuts interest rates:
- The Reserve Bank of India (RBI) on Thursday cut the policy repo rate by 25 basis points to 6.25% in a bid to revive economic growth as it projected retail inflation to remain below its target of 4% for the next 12 months. The rate reduction was the first since August 2017.
- The RBI also simultaneously changed the stance of the policy to ‘neutral’ from ‘calibrated tightening’, which indicates that the central bank remains ready to move in either direction based on incoming data.
- The move will enable banks to lower their lending rates. While all six members of the monetary policy committee voted in favour of a change in the stance, the vote for a rate reduction saw two members breaking with the majority view by backing the status quo.
- This is the first time since the MPC was set up in October 2016 that the Governor and the Deputy Governor voted differently.
- The Andra Pradesh Assembly passed the Bills for 5% reservation each for the Kapus (Kapus, Telaga, Ontari and Balija sub-castes) and other Economically Weaker Sections (EWS) in the general category on Thursday consequent to the 103rd amendment to the Constitution.
- The Bills are the A.P. Economically Weaker Sections of Citizens (Reservation of Seats in Educational Institutions and of Appointments or Posts in the Public Services under the State for Kapus) Bill, 2019 and the A.P. Economically Weaker Sections (EWS) other than Kapus (Reservation of Seats in Educational Institutions and of Appointments or Posts in Public Services under the State) Bill, 2019.
- The Assembly also passed the A.P. Backward Classes Sub-Plan (Planning, Allocation and Utilisation of Financial Resources) Bill, 2019 (BC Sub-Plan) after a brief debate on its modalities.
Source: THE HINDU