1. RBI keeps policy rate unchanged at 8%
i. Despite intense pressure and widespread anticipation, the Raghuram Rajan-led Reserve Bank of India (RBI) has decided to keep the policy rate unchanged.
ii. The Reserve Bank of India (RBI) has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent. It has also decided to keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL).
iii. However, it has reduced the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 23.0 per cent to 22.5 per cent of their NDTLwith effect from the fortnight beginning June 14.
iv. The RBI has also reduced the liquidity provided under the export credit refinance (ECR) facility from 50 per cent of eligible export credit outstanding to 32 per cent with immediate effect.
v. However, it has introduced a special term repo facility of 0.25 per cent of NDTL to compensate fully for the reduction in access to liquidity under the ECR with immediate effect.
vi. The apex bank has also decided to continue to provide liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system.
vii. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent.
Note: The third bi-monthly monetary policy statement is scheduled on August 5th.
2. RBI likely to raise repo rate by 0.25 per cent to tame inflation
i. RBI likely to raise repo rate by 0.25 per cent to tame inflation.
ii. Wholesale Price Index inflation in November climbed to a 14-month high of 7.52 per cent as prices of food items such as onions and potatoes surged. Consumer price inflation touched a nine-month high of 11.24 per cent last month.
iii. Factory output shrank 1.8 per cent in October, the first contraction in the Index of Industrial Production ( IIP) in four months.
iv. "Crucially, core inflation as well as non-food manufacturing inflation rose marginally in November. As a result of rising price pressures, v. RBI is likely to raise the repo rate by 0.25 per cent to 8 per cent on December 18 in its monetary policy review, despite a still-shrinking industrial sector," Crisil said.
vi. RBI Governor Rajan, who delivered two repo rate hikes of 0.25 per cent each in as many policy reviews since he took over on September 4, had mentioned that he considered fighting inflation as the central bank's "key responsibility."
3. Satya Nadella appointed as CEO of Microsoft
i. Satya Nadella was appointed as the Chief Executive Officer of Internet Giant Microsoft in Washington on 4 January 2014. Satya Nadella succeeds Steve Ballmer and he takes over as the third CEO of the Microsoft firm.
ii. Bill Gates is the founder and first CEO of Microsoft. Nadella is the first Indian to head the Microsoft in its 38-year history.
About Satya Nadella
i. Nadella was born in Hyderabad, India and joined Microsoft in 1992. Satya is a proven leader with hard-core engineering skills, business vision and the ability to bring people together.
ii. Nadella holds a bachelor of degree in electrical engineering from Manipal Institute of Technology. Nadella completed masters in computer science from the University of Wisconsin and an MBA from the University of Chicago.
iii. Nadella joined Microsoft in 1992 and he served as the Executive Vice President of Cloud and Enterprise Group in 2012.
iv. His father BN Yugandhar is a former planning commission member and served as special secretary to former Prime Minister P V Narasimha Rao.
About Microsoft
i. Microsoft founded in April 1975 by Bill Gates and Paul Allen in Redmond, US.
ii. At present it is the fourth largest company in the world in terms of market capitalization.
iii. Its block buster products include MS-DOS, Windows and Xbox (Video game).
iv. It acquired Nokia in September 2013 in a 7.2 billion dollar deal.
4. President joined on Twitter with @RashtrapatiBhvn
i. (https://twitter.com/RashtrapatiBhvn). He is the first serving president of India to join Twitter.
ii. The account is the official Twitter account of Rashtrapati Bhavan and is run by President’s Secretariat and tweets from the President Pranab Mukherjee are signed. People can fallow the President for all the updates about activities and news from Rashtrapati Bhavan.
iii. Prime Minister Modi also has an account on twitter with the handle @narendramodi and former President Abdul Kalam with the handle @apj_abdul_kalam.
i. Despite intense pressure and widespread anticipation, the Raghuram Rajan-led Reserve Bank of India (RBI) has decided to keep the policy rate unchanged.
ii. The Reserve Bank of India (RBI) has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent. It has also decided to keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL).
iii. However, it has reduced the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 23.0 per cent to 22.5 per cent of their NDTLwith effect from the fortnight beginning June 14.
iv. The RBI has also reduced the liquidity provided under the export credit refinance (ECR) facility from 50 per cent of eligible export credit outstanding to 32 per cent with immediate effect.
v. However, it has introduced a special term repo facility of 0.25 per cent of NDTL to compensate fully for the reduction in access to liquidity under the ECR with immediate effect.
vi. The apex bank has also decided to continue to provide liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system.
vii. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent.
Note: The third bi-monthly monetary policy statement is scheduled on August 5th.
2. RBI likely to raise repo rate by 0.25 per cent to tame inflation
i. RBI likely to raise repo rate by 0.25 per cent to tame inflation.
ii. Wholesale Price Index inflation in November climbed to a 14-month high of 7.52 per cent as prices of food items such as onions and potatoes surged. Consumer price inflation touched a nine-month high of 11.24 per cent last month.
iii. Factory output shrank 1.8 per cent in October, the first contraction in the Index of Industrial Production ( IIP) in four months.
iv. "Crucially, core inflation as well as non-food manufacturing inflation rose marginally in November. As a result of rising price pressures, v. RBI is likely to raise the repo rate by 0.25 per cent to 8 per cent on December 18 in its monetary policy review, despite a still-shrinking industrial sector," Crisil said.
vi. RBI Governor Rajan, who delivered two repo rate hikes of 0.25 per cent each in as many policy reviews since he took over on September 4, had mentioned that he considered fighting inflation as the central bank's "key responsibility."
3. Satya Nadella appointed as CEO of Microsoft
i. Satya Nadella was appointed as the Chief Executive Officer of Internet Giant Microsoft in Washington on 4 January 2014. Satya Nadella succeeds Steve Ballmer and he takes over as the third CEO of the Microsoft firm.
ii. Bill Gates is the founder and first CEO of Microsoft. Nadella is the first Indian to head the Microsoft in its 38-year history.
About Satya Nadella
i. Nadella was born in Hyderabad, India and joined Microsoft in 1992. Satya is a proven leader with hard-core engineering skills, business vision and the ability to bring people together.
ii. Nadella holds a bachelor of degree in electrical engineering from Manipal Institute of Technology. Nadella completed masters in computer science from the University of Wisconsin and an MBA from the University of Chicago.
iii. Nadella joined Microsoft in 1992 and he served as the Executive Vice President of Cloud and Enterprise Group in 2012.
iv. His father BN Yugandhar is a former planning commission member and served as special secretary to former Prime Minister P V Narasimha Rao.
About Microsoft
i. Microsoft founded in April 1975 by Bill Gates and Paul Allen in Redmond, US.
ii. At present it is the fourth largest company in the world in terms of market capitalization.
iii. Its block buster products include MS-DOS, Windows and Xbox (Video game).
iv. It acquired Nokia in September 2013 in a 7.2 billion dollar deal.
4. President joined on Twitter with @RashtrapatiBhvn
i. (https://twitter.com/RashtrapatiBhvn). He is the first serving president of India to join Twitter.
ii. The account is the official Twitter account of Rashtrapati Bhavan and is run by President’s Secretariat and tweets from the President Pranab Mukherjee are signed. People can fallow the President for all the updates about activities and news from Rashtrapati Bhavan.
iii. Prime Minister Modi also has an account on twitter with the handle @narendramodi and former President Abdul Kalam with the handle @apj_abdul_kalam.
