The Evening Wrap: RBI hikes repo rate by 25 basis points to control inflation

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) based on an assessment of the macroeconomic situation and its outlook, decided by a majority of 4 members out of 6 to increase the policy repo rate by 25 basis points to 6.50%, with immediate effect. Consequently, the standing deposit facility (SDF) rate will stand revised to 6.25%; and the marginal standing facility (MSF) rate and the Bank Rate to 6.75%. The MPC also decided by a majority of 4 out of 6 members to remain focussed on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. In his monetary policy statement, RBI governor Shaktikanta Das on February 8 said, the MPC was of the view that “further calibrated monetary policy action is warranted to keep inflation expectations anchored, break the persistence of core inflation and thereby strengthen the medium-term growth prospects. Accordingly, the MPC decided to raise the policy repo rate by 25 basis points to 6.50%.” The MPC will continue to maintain strong vigil on the evolving inflation outlook so as to ensure that it remains within the tolerance band,” he added. Taking various factors into consideration, real GDP growth for 2023-24 is projected at 6.4% with Q1 at 7.8%; Q2 at 6.2%; Q3 at 6.0%; and Q4 at 5.8%. “The risks are evenly balanced,” Das said. Taking into account several factors and assuming an average crude oil price (Indian basket) of US$ 95 per barrel, Das said inflation is projected at 6.5% in 2022-23, with Q4 at 5.7%. On the assumption of a normal monsoon, CPI inflation is projected at 5.3% for 2023-24, with Q1 at 5.0%, Q2 at 5.4%, Q3 at 5.4% and Q4 at 5.6%. “The risks are evenly balanced,” he said. Stating that a rate hike of 25 basis points was considered as appropriate at the current juncture, he said, “The reduction in the size of the rate hike provides the opportunity to evaluate the effects of the actions taken so far on the inflation outlook and on the economy at large.” “It also provides elbow room to weigh all incoming data and forecasts to determine appropriate actions and policy stance, going forward,” he said. “Monetary policy will continue to be agile and alert to the moving parts in the inflation trajectory to effectively address the challenges to the economy,” Das added. Constitution does not allow aldermen to vote in MCD elections: Supreme Court The Supreme Court on Wednesday said the Constitution does not allow nominated members (aldermen) of a municipality the right to vote in meetings, while issuing notice to the Lieutenant Governor and the Protem Presiding Officer of the Municipal Corporation of Delhi in a petition filed by AAP alleging deliberate stalling of mayoral elections for the third time in a row. The difference is very substantial between you (elected members) and them (nominated members),” Chief Justice of India D.Y. Chandrachud remarked in a preliminary hearing. The three-judge Bench listed the case for detailed hearing on February 13 after senior advocate A.M. Singhvi, appearing for AAP mayoral candidate Shelly Oberoi, urged that the case concerned “destruction of democracy”. Singhvi said Article 243U of the Constitution mandates that elections to constitute a municipality should be completed well in time. He said the elections were held on December 4, 2022. But subsequent polls for the offices of Mayor, Deputy Mayor and Members of the Standing Committees have been stalled thrice. He said the Protem Presiding Officer has allowed nominated members to vote in direct violation of Article 243R(2)(iv) of the Constitution. “It is not just a statute, the Constitution itself does not allow them to vote,” Justice P.S. Narasimha remarked at the point. “Yes, may I say that this is a case of res ipsa loquitur and no less…” Singhvi said. He further said the Protem Presiding Officer is herself “illegal” as she is not the senior most member. Then she orders all three elections of the Mayor, Deputy Mayor and Members of the Standing Committees to be held together. There is directly a provision that this cannot be done,” Singhvi submitted. “Since in terms of Section 76 of the Delhi Municipal Corporation Act of 1957, the Mayor, or in his absence the Deputy Mayor, has to preside over every meeting of the corporation, the simultaneous holding elections of Mayor, Deputy Mayor and Members of the Standing Committees is directly contrary to the provisions of the statute,” the court recorded Singhvi’s contention in its order. Oberoi had moved the Supreme Court on January 27, pleading for swift and timely conduct of the mayoral polls after the House was stalled twice — January 6 and 24. She later withdrew while seeking permission to move the court again in case the aldermen were allowed to vote. Soon after the House was adjourned on February 6, senior AAP leader Manish Sisodia had said that the party would seek the Supreme Court’s intervention for the impartial conduct of the mayoral elections. AAP chief spokesperson Saurabh Bhardwaj said the party had shared with the apex court evidence of the BJP-led Centre trying “to form its own government within the MCD through unfair means”. “We have videos that show how the BJP councillors started creating a ruckus in the House on Monday while AAP councillors sat quietly. The BJP councillors indulged in hooliganism and shouted slogans, following which the House was adjourned. This means that the whole conspiracy [to stall the House] had been planned,” he said on Tuesday. The results of the MCD polls were announced on December 7, where AAP secured the majority with 134 wards in the 250-ward House, followed by the BJP with 104 wards. Celebrate ‘Cow Hug Day’ on February 14: Animal Welfare Board of India The Animal Welfare Board of India has issued a notice appealing to people to celebrate “Cow Hug Day” on February 14 to spread “positive energy” and encourage “collective happiness”, officials said on Wednesday. Valentine’s Day is celebrated on February 14 every year. “All cow lovers may celebrate February 14 as Cow Hug Day keeping in mind the importance of mother cow and make life happy and full of positive energy,” read the notice issued by the board under the Department of Animal Husbandry and Dairying. The notice further said hugging cows will bring “emotional richness” and increase “individual and collective happiness”. It also mentioned that Vedic traditions are almost on the “verge of extinction” due to the “progress of West culture” and that the “dazzle of western civilisation has made our physical culture and heritage almost forgotten”. The notice has been issued with approval of the competent authority, the officials said. Rahul’s remarks on Modi’s ‘relationship’ with Adani expunged; Democracy cremated in Lok Sabha, says Congress Parliamentary Affairs Minister Pralhad Joshi on Wednesday demanded that action be taken against Congress leader Rahul Gandhi for his certain“objectionable” comments made in Lok Sabha, and that they be expunged from the records. Certain remarks of Gandhi made in the House on Tuesday have already been expunged from the records. As soon as the House met for the day, Joshi raised the issue saying that under Parliamentary rules one should serve a notice beforehand if he or she wants to make allegations against anyone. “The Congress leader has made some remarks yesterday. Those were very objectionable and baseless allegations. Those should be expunged and action should be taken against him,” he told Speaker Om Birla. The Minister said a privilege motion will be moved against Gandhi for his comments. He said a privilege notice has already been served but it was not even authenticated. However, the Speaker did not take any decision immediately but said he would examine the matter and accordingly decide. Gandhi Tuesday led a blistering opposition attack in Lok Sabha over the Hindenburg report, claiming that the meteoric rise in Gautam Adani’s fortunes happened after the BJP came to power in 2014 as he rose in the global rich list from the 609th to the second spot eventually. Reacting to the move to expunge parts of Gandhi’s speech, Congress general secretary in-charge communications Jairam Ramesh said, “With the expunging of Rahul Gandhi’s remarks on PM linked Adani Maha Mega Scam, deMOcracy was cremated in the Lok Sabha. OM Shanti.” Left-leaning unions urge Kharge to reconsider protests in front of LIC offices Leaders of two Left-leaning and two independent unions working among the employees of Life Insurance Corporation of India (LIC) have written to Congress president Mallikarjun Kharge urging him to reconsider the decision to hold protests in front of the LIC offices on the issue of Hindenburg report against the Adani Group. The leaders said such protests will “tarnish the image of the finest public sector institution” of the country. In the letter to Kharge, the Federation of LIC Class I Officers’ Associations, National Federation of Insurance Field Workers of India, All India Insurance Employees Association and the All India LIC Employees Federation said ever since the Hindenburg report, a large section of the people and political parties have expressed their concern over the LIC’s “presumably high exposure” to the Adani group of companies and how it could risk the savings of middle-class Indians. “We are opposed to political patronage to any business group at the cost of public sector, the people and the economy. We want that the government should conduct an impartial enquiry into the allegations made by the Hindenburg Report and find out the truth,” they said adding that LIC is a long term investor and the investment decisions are taken keeping the long term benefits of the policy holders in mind. “Since LIC is a statutory body created under an act of Parliament, all its investment decisions are subject to parliamentary scrutiny and regulatory supervision,” they said in the letter. “Regarding the investment in the Adani Group and the supposed loss to LIC, we have to clarify that this loss is only notional and not real. LIC has not sold any Adani Group shares held by it in the market to sustain any loss,” they said. Citing the LIC statement on the matter, the unions said LIC has earned a notional profit of almost ₹20,000 crore on its investment in the Adani Group. “However, the profit is as notional as is the presumed loss,” they told Kharge. “We feel that holding demonstrations before LIC offices would tarnish the image of the finest public sector institution of the country. We would request you to please reconsider the decision in view of what has been stated above,” the letter added. Internet blocking committee met 53 times in 2022: IT Ministry A committee to consider blocking requests under the Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009, met 53 times in 2022, the Ministry of Electronics and Information Technology (MeitY) said in a parliamentary response on Wednesday. The government issued orders directing the “blocking [of] a total of 2799, 3635, 9849, 6096 and 6775 URLs during the year 2018, 2019, 2020, 2021 and 2022 respectively,” the IT Ministry said in response to a question by Congress MP Karti P. Chidambaram. In 2020, the government blocked several posts on social media that were critical of its handling of the pandemic, and also advised social media platforms to curb posts that called the Delta variant of the SARS-CoV-2 virus an “Indian” one. After that year, 2022 represents the highest number of blocking orders issued to internet providers and social media platforms. An RTI response obtained by the Commonwealth Human Rights Initiative (CHRI) reveals that of the 6,775 posts and websites, almost half were posts on Twitter. The social media platform has been fighting against some takedown orders in the Karnataka High Court, but after the company was acquired by businessman Elon Musk, it has said that legal requests that are “appropriately” received by the company will be complied with. “If the Twitter and non-Twitter URLs are taken together, the average for blocking orders recommended by the Review Committee under Rule 7 in 2021 is hundreds per month,” CHRI director Venkatesh Nayak wrote in an analysis. Considering the seniority of the officials in the committee, Nayak flagged the volume of orders they approved for blocking. “The Secretary [of] MeitY and the Committee are required to apply their mind to hundreds of such orders every month before giving their approval,” Nayak pointed out. “How much time they have actually devoted to such matters is anybody’s guess.” In Brief: Contact-tracing data from the COVID-19 pandemic collected by the Aarogya Setu app has been deleted from government databases, the Ministry of Electronics and Information Technology said in a written response in Parliament. “In accordance with the provisions of the [Aarogya Setu Data Access and Knowledge Sharing Protocol, 2020], the contact-tracing feature of the Aarogya Setu mobile application has been discontinued and contact-tracing data collected through it has been deleted,” the government said in response to a question by Congress MP Dr. Amar Singh. The Aarogya Setu app had raised some privacy concerns right after its launch in the initial months of the COVID-19 pandemic in 2020. Evening Wrap will return tomorrow. [logo] The Evening Wrap 08 FEBRUARY 2023 [The Hindu logo] Welcome to the Evening Wrap newsletter, your guide to the day’s biggest stories with concise analysis from The Hindu. [[Arrow]Open in browser]( [[Mail icon]More newsletters]( RBI hikes repo rate by 25 basis points to control inflation; real GDP growth for FY24 projected at 6.4% The [Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) based on an assessment of the macroeconomic situation and its outlook, decided by a majority of 4 members out of 6 to increase the policy repo rate by 25 basis points to 6.50%]( with immediate effect. Consequently, the standing deposit facility (SDF) rate will stand revised to 6.25%; and the marginal standing facility (MSF) rate and the Bank Rate to 6.75%. The MPC also decided by a majority of 4 out of 6 members to remain focussed on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. In his monetary policy statement, RBI governor Shaktikanta Das on February 8 said, the MPC was of the view that “further calibrated monetary policy action is warranted to keep inflation expectations anchored, break the persistence of core inflation and thereby strengthen the medium-term growth prospects. Accordingly, the MPC decided to raise the policy repo rate by 25 basis points to 6.50%.” The MPC will continue to maintain strong vigil on the evolving inflation outlook so as to ensure that it remains within the tolerance band,” he added. Taking various factors into consideration, real GDP growth for 2023-24 is projected at 6.4% with Q1 at 7.8%; Q2 at 6.2%; Q3 at 6.0%; and Q4 at 5.8%. “The risks are evenly balanced,” Das said. Taking into account several factors and assuming an average crude oil price (Indian basket) of US$ 95 per barrel, Das said inflation is projected at 6.5% in 2022-23, with Q4 at 5.7%. On the assumption of a normal monsoon, CPI inflation is projected at 5.3% for 2023-24, with Q1 at 5.0%, Q2 at 5.4%, Q3 at 5.4% and Q4 at 5.6%. “The risks are evenly balanced,” he said. Stating that a rate hike of 25 basis points was considered as appropriate at the current juncture, he said, “The reduction in the size of the rate hike provides the opportunity to evaluate the effects of the actions taken so far on the inflation outlook and on the economy at large.” “It also provides elbow room to weigh all incoming data and forecasts to determine appropriate actions and policy stance, going forward,” he said. “Monetary policy will continue to be agile and alert to the moving parts in the inflation trajectory to effectively address the challenges to the economy,” Das added. Constitution does not allow aldermen to vote in MCD elections: Supreme Court The [Supreme Court on Wednesday said the Constitution does not allow nominated members (aldermen) of a municipality the right to vote in meetings]( while issuing notice to the Lieutenant Governor and the Protem Presiding Officer of the Municipal Corporation of Delhi in a petition filed by AAP alleging deliberate stalling of mayoral elections for the third time in a row. The difference is very substantial between you (elected members) and them (nominated members),” Chief Justice of India D.Y. Chandrachud remarked in a preliminary hearing. The three-judge Bench listed the case for detailed hearing on February 13 after senior advocate A.M. Singhvi, appearing for AAP mayoral candidate Shelly Oberoi, urged that the case concerned “destruction of democracy”. Singhvi said Article 243U of the Constitution mandates that elections to constitute a municipality should be completed well in time. He said the elections were held on December 4, 2022. But subsequent polls for the offices of Mayor, Deputy Mayor and Members of the Standing Committees have been stalled thrice. He said the Protem Presiding Officer has allowed nominated members to vote in direct violation of Article 243R(2)(iv) of the Constitution. “It is not just a statute, the Constitution itself does not allow them to vote,” Justice P.S. Narasimha remarked at the point. “Yes, may I say that this is a case of res ipsa loquitur and no less…” Singhvi said. He further said the Protem Presiding Officer is herself “illegal” as she is not the senior most member. Then she orders all three elections of the Mayor, Deputy Mayor and Members of the Standing Committees to be held together. There is directly a provision that this cannot be done,” Singhvi submitted. “Since in terms of Section 76 of the Delhi Municipal Corporation Act of 1957, the Mayor, or in his absence the Deputy Mayor, has to preside over every meeting of the corporation, the simultaneous holding elections of Mayor, Deputy Mayor and Members of the Standing Committees is directly contrary to the provisions of the statute,” the court recorded Singhvi’s contention in its order. Oberoi had moved the Supreme Court on January 27, pleading for swift and timely conduct of the mayoral polls after the House was stalled twice — January 6 and 24. She later withdrew while seeking permission to move the court again in case the aldermen were allowed to vote. Soon after the House was adjourned on February 6, senior AAP leader Manish Sisodia had said that the party would seek the Supreme Court’s intervention for the impartial conduct of the mayoral elections. AAP chief spokesperson Saurabh Bhardwaj said the party had shared with the apex court evidence of the BJP-led Centre trying “to form its own government within the MCD through unfair means”. “We have videos that show how the BJP councillors started creating a ruckus in the House on Monday while AAP councillors sat quietly. The BJP councillors indulged in hooliganism and shouted slogans, following which the House was adjourned. This means that the whole conspiracy [to stall the House] had been planned,” he said on Tuesday. The results of the MCD polls were announced on December 7, where AAP secured the majority with 134 wards in the 250-ward House, followed by the BJP with 104 wards. Celebrate ‘Cow Hug Day’ on February 14: Animal Welfare Board of India The [Animal Welfare Board of India has issued a notice appealing to people to celebrate “Cow Hug Day” on February 14]( to spread “positive energy” and encourage “collective happiness”, officials said on Wednesday. Valentine’s Day is celebrated on February 14 every year. “All cow lovers may celebrate February 14 as Cow Hug Day keeping in mind the importance of mother cow and make life happy and full of positive energy,” read the notice issued by the board under the Department of Animal Husbandry and Dairying. The notice further said hugging cows will bring “emotional richness” and increase “individual and collective happiness”. It also mentioned that Vedic traditions are almost on the “verge of extinction” due to the “progress of West culture” and that the “dazzle of western civilisation has made our physical culture and heritage almost forgotten”. The notice has been issued with approval of the competent authority, the officials said. Rahul’s remarks on Modi’s ‘relationship’ with Adani expunged; Democracy cremated in Lok Sabha, says Congress Parliamentary Affairs Minister [Pralhad Joshi on Wednesday demanded that action be taken against Congress leader Rahul Gandhi for his certain“objectionable” comments made in Lok Sabha]( and that they be expunged from the records. Certain remarks of Gandhi made in the House on Tuesday have already been expunged from the records. As soon as the House met for the day, Joshi raised the issue saying that under Parliamentary rules one should serve a notice beforehand if he or she wants to make allegations against anyone. “The Congress leader has made some remarks yesterday. Those were very objectionable and baseless allegations. Those should be expunged and action should be taken against him,” he told Speaker Om Birla. The Minister said a privilege motion will be moved against Gandhi for his comments. He said a privilege notice has already been served but it was not even authenticated. However, the Speaker did not take any decision immediately but said he would examine the matter and accordingly decide. Gandhi Tuesday led a blistering opposition attack in Lok Sabha over the Hindenburg report, claiming that the meteoric rise in Gautam Adani’s fortunes happened after the BJP came to power in 2014 as he rose in the global rich list from the 609th to the second spot eventually. [Reacting to the move to expunge parts of Gandhi’s speech]( Congress general secretary in-charge communications Jairam Ramesh said, “With the expunging of Rahul Gandhi’s remarks on PM linked Adani Maha Mega Scam, deMOcracy was cremated in the Lok Sabha. OM Shanti.” Left-leaning unions urge Kharge to reconsider protests in front of LIC offices Leaders of two Left-leaning and two independent unions working among the employees of Life Insurance Corporation of India (LIC) have written to Congress president Mallikarjun Kharge [urging him to reconsider the decision to hold protests in front of the LIC offices on the issue of Hindenburg report against the Adani Group](. The leaders said such protests will “tarnish the image of the finest public sector institution” of the country. In the letter to Kharge, the Federation of LIC Class I Officers’ Associations, National Federation of Insurance Field Workers of India, All India Insurance Employees Association and the All India LIC Employees Federation said ever since the Hindenburg report, a large section of the people and political parties have expressed their concern over the LIC’s “presumably high exposure” to the Adani group of companies and how it could risk the savings of middle-class Indians. “We are opposed to political patronage to any business group at the cost of public sector, the people and the economy. We want that the government should conduct an impartial enquiry into the allegations made by the Hindenburg Report and find out the truth,” they said adding that LIC is a long term investor and the investment decisions are taken keeping the long term benefits of the policy holders in mind. “Since LIC is a statutory body created under an act of Parliament, all its investment decisions are subject to parliamentary scrutiny and regulatory supervision,” they said in the letter. “Regarding the investment in the Adani Group and the supposed loss to LIC, we have to clarify that this loss is only notional and not real. LIC has not sold any Adani Group shares held by it in the market to sustain any loss,” they said. Citing the LIC statement on the matter, the unions said LIC has earned a notional profit of almost ₹20,000 crore on its investment in the Adani Group. “However, the profit is as notional as is the presumed loss,” they told Kharge. “We feel that holding demonstrations before LIC offices would tarnish the image of the finest public sector institution of the country. We would request you to please reconsider the decision in view of what has been stated above,” the letter added. Internet blocking committee met 53 times in 2022: IT Ministry [A committee to consider blocking requests under the Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009, met 53 times in 2022]( the Ministry of Electronics and Information Technology (MeitY) said in a parliamentary response on Wednesday. The government issued orders directing the “blocking [of] a total of 2799, 3635, 9849, 6096 and 6775 URLs during the year 2018, 2019, 2020, 2021 and 2022 respectively,” the IT Ministry said in response to a question by Congress MP Karti P. Chidambaram. In 2020, the government blocked several posts on social media that were critical of its handling of the pandemic, and also advised social media platforms to curb posts that called the Delta variant of the SARS-CoV-2 virus an “Indian” one. After that year, 2022 represents the highest number of blocking orders issued to internet providers and social media platforms. An RTI response obtained by the Commonwealth Human Rights Initiative (CHRI) reveals that of the 6,775 posts and websites, almost half were posts on Twitter. The social media platform has been fighting against some takedown orders in the Karnataka High Court, but after the company was acquired by businessman Elon Musk, it has said that legal requests that are “appropriately” received by the company will be complied with. “If the Twitter and non-Twitter URLs are taken together, the average for blocking orders recommended by the Review Committee under Rule 7 in 2021 is hundreds per month,” CHRI director Venkatesh Nayak wrote in an analysis. Considering the seniority of the officials in the committee, Nayak flagged the volume of orders they approved for blocking. “The Secretary [of] MeitY and the Committee are required to apply their mind to hundreds of such orders every month before giving their approval,” Nayak pointed out. “How much time they have actually devoted to such matters is anybody’s guess.” In Brief: [Contact-tracing data from the COVID-19 pandemic collected by the Aarogya Setu app has been deleted from government databases, the Ministry of Electronics and Information Technology said]( in a written response in Parliament. “In accordance with the provisions of the [Aarogya Setu Data Access and Knowledge Sharing Protocol, 2020], the contact-tracing feature of the Aarogya Setu mobile application has been discontinued and contact-tracing data collected through it has been deleted,” the government said in response to a question by Congress MP Dr. Amar Singh. The Aarogya Setu app had raised some privacy concerns right after its launch in the initial months of the COVID-19 pandemic in 2020. Evening Wrap will return tomorrow. First Day First Show Stay up-to-date on all things cinema with the "First Day First Show" cinema & entertainment newsletter. Every week, we bring you movie reviews, news from regional cinema, Bollywood, Hollywood, and beyond, as well as updates from the streaming platforms. Whether you're a cinephile or just looking for your next great binge-watch, we've got you covered. 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