RBI keeps key policy rates unchanged
- The Reserve Bank of India kept its powder dry in the third review of the monetary policy since the COVID19 pandemic spread in the country, leaving key policy rates unchanged in the face of rising inflation pressures but asserted that propping up economic recovery has assumed “primacy” in the “worst peacetime health and economic crisis of the last 100 years”.
- The central bank didn’t extend the moratorium on loan repayments offered to borrowers beyond August 31 but allowed banks to restructure loans from large corporates, micro, small and medium enterprises as well as individuals to help stem the rising stress on incomes and balance sheets.
Manoj Sinha appointed J&K LG, Murmu CAG
- Railways and BJP leader Manoj Sinha was on Thursday appointed the Lieutenant Governor of Jammu and Kashmir after incumbent G.C. Murmu, a former IAS officer, resigned on Wednesday.
- Mr. Sinha will be the third Governor/LieutenantGovernor appointed by the BJP government in J&K in three years. Mr. Murmu’s appointment was preceded by that of BJP leader Satyapal Malik, who was sent to Goa as Governor when J&K was reduced to a Union Territory.
Inflation to stay elevated: RBI
- India’s GDP will shrink in 2020-21, while inflation will continue to stay elevated in the coming months. An early containment of the COVID-19 pandemic being the only hope for a positive surprise.
- Inflation had gone up from 5.8% in March to 6.1% in June 2020. A good monsoon and a bumper kharif crop could ease food prices, especially those of protein based food items and vegetables that are propping up food inflation, the central bank noted.
India rejects China’s UNSC move on Kashmir
- China prompted the United Nations Security Council (UNSC) to discuss the Kashmir issue in a closed door meeting, India “firmly” rejected the Chinese initiative and reiterated that Kashmir is a domestic issue.
- The Chinese move came on the first anniversary of the dilution of Article 370, which led to the creation of the Union Territories of Jammu & Kashmir and Ladakh and ended the special status for the region.