All India Radio News Summary: 06 DECEMBER 2017
All India Radio News Summary: 06 DECEMBER 2017
- RBI keeps the Repo rate unchanged at 6 per cent after its monetary policy review.
The Reserve Bank of India kept its key lending rate unchanged after its monetary policy review. The 6-member Monetary Policy Committee (MPC) headed by Reserve Bank of India Governor Urjit Patel kept the repo rate, the rate at which the RBI lends, short-term, to banks, unchanged at 6 per cent.
- The reverse repo rate was kept steady at 5.75 per cent.
- The Reserve Bank said the reason for the decision was achieving the medium-term target for consumer price index inflation of 4 per cent, while supporting growth.
- Expecting the price situation to harden, the RBI raised its inflation estimate to 4.3 to 4.7 per cent, from the earlier projection of 4.2 to 4.6 per cent, for the second half of the current fiscal.
The committee expressed concern about the implications for the inflation outlook of possible fiscal slippage and the global financial instability iteming asset price volatility.
- MPC also expected the usual seasonal moderation in the prices of vegetables and food and the lowering of tax rates by the GST council to mitigate some of these pressures.
- The apex bank retained its GDP growth forecast of 6.7 per cent for 2017-18.
- The Reserve Bank said the recent rise in global crude oil prices may sustain.
- And it said the implementation of farm loan waivers by some states, partial rollback of excise duty and VAT in the case of petroleum products, and decrease in revenue due to reduction in GST rates may result in fiscal slippage.
- Finance Minister appeals to business leaders to make investments in infrastructure sector.
Finance Minister began his pre-Budget consultative meetings with stakeholders. Separate meetings were held with representatives of agriculture groups and trade union groups.
- During the meeting with agriculture groups, FM stressed on the need to conserve water, incentivize agro processing and promote balanced use of fertilizers in order to ensure higher agriculture productivity.
- In his meeting with the representatives of the different Trade Union Groups, FM reiterated the commitment of the Government to safeguard the interests of the workers especially those working in the MSME and the unorganized sector.
- Finance Minister asked business leaders to make investments in the infrastructure sector to build a stronger India. Private investment along with public and foreign investment are key to boosting growth and creating job opportunities.
- The Government has taken various steps in this regard and has also set-up the National Investment and Infrastructure Fund among others.
- India’s global initiative, the International Solar Alliance (ISA) will become a treaty-based international intergovernmental organization
India’s global initiative, the International Solar Alliance (ISA) will become a treaty-based international intergovernmental organization.
- The ISA aims at increasing solar energy deployment in member countries.
- The initiative was jointly launched by Prime Minister and then President of France on 30th November 2015 in Paris, on the side-lines of UN Climate Conference COP-21.
- Interim Director General of ISA said, out of 250 billion dollars investment which came to renewable energy sector, solar energy itself attracted 150 billion dollars.
- China decides to temporarily stop funding at least three major road projects in Pakistan on grounds of corruption;
China has decided to temporarily stop funding at least three major road projects in Pakistan, being built as part of the 50 billion US dollar China-Pakistan Economic Corridor.
- The decision follows reports of corruption.
- The decision by the Chinese government is likely to hit over one trillion Pakistani rupees worth of road projects in Pakistan.
- The projects affected include a flagship project of China’s One Road One Belt passing through PoK. It was to link China’s restive Xinjiang region with Pakistan’s Balochistan province.
- US House of Representatives passes a resolution condemning “ethnic cleansing” of Rohingya Muslims in Rakhine state of Myanmar
The US House of Representatives has passed a resolution condemning “ethnic cleansing” of Rohingyas and urging immediate restoration of humanitarian access to the Rakhine state. The unrest there has forced over 600,000 Rohingya Muslims to flee to Bangladesh.
- The US House of Representatives called on Myanmar’s leadership to end attacks on minorities in the northern Rakhine state.
- Burmese leaders’ commitment for restoring democracy will be judged by their respect for the individual rights and freedom of all people irrespective of their faith or ethnicity.
- It also urges Aung San Suu Kyi to exercise moral leadership.
- US President Donald Trump expected to recognise Jerusalem as Isreali capital.
President Donald Trump will recognize Jerusalem as Israel’s capital and instruct the State Department to begin the multi-year process of moving the American embassy from Tel Aviv to the holy city.
- Earlier, Mr Trump held discussions with Israeli and Arab leaders, ahead of his plans to recognise Jerusalem as Israel’s capital.
- While the Arab League , Turkey and Jordan have warned the US against moving its embassy to Jerusalem , Israel has welcomed its decision stating that Jerusalem remains its ‘eternal’ capital Israel has always regarded Jerusalem as its capital city, while the Palestinians claim East Jerusalem as the capital of a future Palestinian state.
- The issue goes to the heart of Israel’s conflict with the Palestinians, who are backed by the Arab and wider Islamic world.
Observers are of the opinion that if the Trump administration goes ahead with its decision, it will be a historic move that may fuel violence in the region and further complicate the situation in the Middle East.