Reserve Bank of India Governor Shaktikanta Das announced a 35 basis points (bps) hike in the repo rate during the bi-monthly monetary policy decision on Wednesday, December 7, at the culmination of the three-day Monetary Policy Committee (MPC) meeting. Reserve Bank of India's rate-setting panel had begun deliberations on Monday with regards to the next round of monetary policy.  

RBI Monetary Policy and Rate Hike: Salient Points

TRS MLC Kalvakuntla Kavitha, who was issued a notice by the Central Bureau of Investigation for questioning in relation to the Delhi excise policy case, on Monday said that she would not be able to meet the CBI officials on December 6 and is available for questioning by sleuths from December 11-15 except December 13. 

She wrote a letter addressed to Raghavendra Vatsa, Head of Branch/ DIG, CBI, ACB Delhi.

Amid retail inflation showing signs of moderation and the need to push growth, the Reserve Bank of India (RBI) may signal a slower pace of tightening at its upcoming monetary policy review on Wednesday.

The RBI may opt for a lower rate increase of 25-35 basis points in lending rates after three back-to-back 50 basis points hike in interest rates, experts believe.

RBI Governor Shaktikanta Das headed six-member rate setting panel is scheduled to meet for three days beginning Monday to take a call on the next set of monetary policy.

The central bank will come out with its bi-monthly policy review on 7 December at the end of the three-day meeting.

Since China’s 20th Party Congress convened in mid-October, the assessment of most commentators has been overwhelmingly negative. As was widely anticipated, Xi Jinping was reelected as party general secretary for an unprecedented third five-year term. The main surprise was the extent to which Xi consolidated power by appointing loyalists to key positions while those retiring included individuals considered to be reformists. The most visible symbol of the changing of the guard occurred when Xi’s predecessor, Hu Jintao, was escorted off-stage.

The market response included a steep sell-off of Chinese stocks and currency. The Nasdaq Golden Dragon China Index of U.S.-listed Chinese companies plunged to the lowest level in nearly a decade, while the Chinese yuan fell to 7.25 per dollar, the lowest level since the 2008 Global Financial Crisis.

India’s biggest conglomerates Adani Group and Reliance Industries avoided a clash in the auction of the insolvent Lanco Amarkantak Power on Wednesday. The Gautam Adani and Mukesh Ambani-led groups stayed away from the process citing a violation in the sale process.

Adani Group and RIL told Lanco’s lenders that the proposed ‘challenge mechanism’ violated the rules of the Insolvency and Bankruptcy Code (IBC), which does not have the provision, reported Economic Times.

Only three resolution applicants Adani Power, Reliance Industries and a consortium of Power Finance Corporation and Rural Electrification Corporation Ltd (REC) were invited to bid for the assets of the distressed thermal power firm undergoing insolvency proceedings.