Economy
Interesting to see how MPC will tackle monetary policy: Fitch
A day before the Reserve Bank of India announces 2016-17's fourth monetary bi-monthly policy, rating agency Fitch said it is waiting to see how the newly-formed Monetary Policy Committee tackles it, hinting that a low inflation targeting could positively impact the country's rating.
 
"The inflation targeting framework now in place, should reduce the impact of pressures, but it will be interesting to see how this will play out in the Monetary Policy Committee (MPC), in which members appointed by both the government and RBI, will have a vote on monetary policy," Thomas Rookmaaker, Director, Asia-Pacific Sovereigns Group, Fitch Ratings, told IANS.
 
"Structurally low inflation would positively impact the sovereign rating profile as it would improve the investment climate and, hence, contribute to sustainable growth," he added.
 
Fitch implied that it expected no rate cuts with a focus on containing inflation in Tuesday's policy, which will be also the first under the leadership of new Governor Urjit Patel.
 
"The fact that Dr. Patel has served as deputy governor in the past three years, suggests continuation of the current policy direction in the years ahead. Dr. Patel was part of the team at RBI that set in motion significant policy changes to deal with both high inflation and weak bank balance sheets, including through the set-up of new policy frameworks," Rookmaaker told IANS in an e-mail interview.
 
The elevation of Patel has raised expectations among those who were critical of his predecessor Raghruam Rajan for not easing enough the monetary policy by cutting rates, though Patel's moorings are as monetarist and he is considered to attach the same importance to inflation control.
 
The MPC, which is now tasked with the job of taking a call on the interest rates, would theoretically target the range around the mid-point and not one of the outer points specifically, though it was early to tell if inflation in practice will remain skewed to one side of the range, Rookmaaker said.
 
The government has set an annual inflation target of four per cent, plus or minus two percentage points.
 
"The inflation target range that the RBI will use in the medium term seems rather broad, in the sense that 2 per cent seems quite low and 6 per cent quite high for an emerging economy like India. But it seems to make sense to have a rather broad range around the 4 per cent mid-point, as food and oil price movements can have a large impact on headline inflation," Rookmaaker said.
 
Wholesale food price inflation was 5.3 per cent during financial years 1996 to 2005 but increased to 9.2 per cent between financial years 2006 and 2016. Clearly, the fight on the inflation front, particularly food inflation, is far from over.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Japan's Yoshinori Ohsumi wins medicine Nobel
Yoshinori Ohsumi, a Japanese cell biologist specialising in autophagy and a professor in Tokyo Institute of Technology's Frontier Research Centre, was on Monday awarded the Nobel Prize in Physiology or Medicine for his discoveries of the mechanism for autophagy, a process that deals with destruction of cells in the body.
 
The Nobel Assembly at Karolinska Institutet decided to award the prize to Ohsumi, 71, as his discoveries led to a new paradigm in the "understanding of how the cell recycles its content".
 
"His discoveries opened the path to understanding the fundamental importance of autophagy in many physiological processes, such as in the adaptation to starvation or response to infection," a statement on the official website of the Nobel Prize said.
 
Because of Japan's 23rd Nobel Laureate Ohsumi's works, it is now known that autophagy -- self eating -- controls important physiological functions where cellular components need to be degraded and recycled.
 
The concept emerged during the 1960s, when researchers first observed that the cell could destroy its own contents by enclosing it in membranes, forming sack-like vesicles that were transported to a recycling compartment, called the lysosome, for degradation.
 
Ohsumi reasoned that if he could disrupt the degradation process in the vacuole while the process of autophagy was active, then autophagosomes should accumulate within the vacuole and become visible under the microscope.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Pakistan army fires at Indian posts in Poonch
The Pakistan army on Monday resorted to unprovoked mortar shelling and firing at Indian positions in two places in Poonch district, authorities said.
 
After opening fire in Shahpur area, the Pakistan army started shelling and gunfire in Sabjiyan area of Poonch district.
 
Police said 82 mm mortar shelling was started in Shahpur area on the Line of Control (LoC) by Pakistan army to target Indian positions on Monday morning.
 
"The Indian army effectively retaliated Pakistan shelling using same calibre weapons," a senior police officer said.
 
"While intermittent shelling and firing exchanges are still going on in Shahpur area, Pakistan army started shelling in Sabjiyan area of the LoC today (Monday) afternoon," he added.
 
"The Indian army is retaliating the Pakistan shelling and firing at Sabjiyan this time," he said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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