cuts key rates; repo rate unchanged
Mumbai: Taking a
cautious stance, the Reserve Bank on Tuesday cut CRR by 0.25 percent -
the percentage of deposits banks keep with central bank - but
refrained from reducing lending rates in view high inflation.
Following the cut, CRR will
come down to 4.25 percent while the repo rate, at which the central
bank lends to the banks, would remain unchanged at 8 percent.
The reverse repo, at which
it absorbs excess liquidity through borrowings from banks, remains at
RBI said government's
reform efforts are in the right path but added that immediate
implementation and continued measures are needed to bring economy back
to growth path.
"Monetary policy needs
to be cautious in the interim, focusing on inflation while using the
available space to support growth to the degree it can," RBI said
in its macroeconomic and monetary development review for July-
Earlier on Monday, Finance
Minister P Chidambaram had unveiled a five-year roadmap for fiscal
consolidation wherein he projected to bring down fiscal deficit to 3
percent of GDP by 2016-17 from 5.3 percent estimated in the current
Economic growth fell to a
nine-year low of 6.5 percent in 2011-12. The growth rate in the
April-June quarter of 2012-13 fiscal was 5.5 percent.
RBI said the global growth
prospects, both in advanced and emerging economies, have weakened and
the eurozone troubles have affected business confidence and caused
deceleration in global trade.
Sandy hits US, over 10 dead
New York: At least 10 people were killed as megastorm Sandy battered
the US East Coast today with fierce winds and heavy rain, uprooting
trees, power lines and plunging several areas in darkness.
Sandy, one of the biggest
storms ever to hit the US, battered the coastline of New Jersey, where
a large number of Indian families reside, with 80 mph winds, pushing
seawater up by an unprecedented 13-feet in New York City.
Floods inundated large
number of areas, leaving nearly 5.5 million people without electricity
in New York and New Jersey.
The storm left a trail of
death, and the toll is expected to mount. Two people perished in
Mendham, New Jersey, when a tree struck their car, officials said.
In New York state, at least
six persons were killed, including a 30-year-old man who died when a
tree fell on his house. Two people died in other incidents.
It also flooded
ground-zero, the site of the 9/11 terror attacks here. There was also
report of damage to facade of a building in Manhattan.
Authorities evacuated patients and staff of a New York city hospital after superstorm Sandy hit the East Coast.
rains, cyclone alert in TN, Andhra
Chennai: A deep
depression over the Bay of Bengal, which would further intensify into
a cyclonic storm, today brought heavy rains in many parts of Tamil
Nadu, especially in coastal areas, prompting the government to declare
a holiday for schools.
Cuddalore and Villupuram received heavy rains in the morning,
inconveniencing office-goers. The cyclonic storm would cross between
Nagapattinam and Nellore tomorrow, Met Department said.
"The deep depression
over southwest Bay of Bengal moved westwards, and lay centred at 1800
UTC of yesterday over southwest Bay of Bengal near latitude 9.00N and
longitude 82.00E, about 500 km south-southeast of Chennai and 100 km
east-northeast of Trincomalee (Sri Lanka)." "The system
would intensify further into a cyclonic storm and move westwards for
some more time and come very close to Sri Lanka coast and then move
northwestwards and cross north Tamil Nadu and adjoining south Andhra
Pradesh coast between Nagapattinam and Nellore by tomorrow
afternoon," the Met Department said.
It forecast "heavy to
extremely heavy rainfall" upto 25 cm or more besides squally
winds reaching upto 45-55 kmph of speed and gusting upto 65 kmph off
north Tamil Nadu, Puducherry and adjoining south Andhra Pradesh coasts
during next 12 hours", it said.