Although vegetable prices moderated sharply in September, the central bank will keep the interest rates at current levels for a prolonged period, says Nomura
The Reserve Bank of India (RBI) will keep the interest rates at current levels for a prolonged period to achieve an inflation at around 6% by January 2016 based on consumer price index (CPI), says Nomura in a research report. The RBI will announce its fourth bi-monthly monetary policy on Tuesday.
Nomura said, "Positive real policy rates, lower minimum support prices and a moderation in rural wages all suggest that, while the inflation path will be bumpy, a gradual disinflation should continue."
According to the data from Ministry of Consumer Affairs, vegetable prices moderated sharply (by about 8% month-on-month) in September following sharp increases over the previous two months. "This significant fall in addition to favourable base effect should help lower CPI inflation to nearly 7% y-o-y in September from 7.8% in August," Nomura said.
According to the research note, base effects over the next two months remain significant, and if the downtrend in vegetable prices continues, CPI inflation will likely drop significantly over the next three readings before rising back up in first quarter of 2015 to the 7.0%-7.5% range.
Shiv Sena, the second largest constituent of the NDA with 18 Lok Sabha MPs, was upset over poor representation it got in the Modi government as well as the heavy industries portfolio Geete had received
Anant Geete, Shiv Sena’s lone member in the Narendra Modi Cabinet, will resign, party chief Uddhav Thackeray said on Monday, four days after the split in the saffron alliance.
“After Prime Minister Narendra Modi returns from the US, Geete will go to him and submit his resignation,” he said.
Shiv Sena sources said the party was also likely to quit from National Democratic Alliance (NDA) led by Bharatiya Janata Party (BJP).
Uddhav’s announcement followed estranged cousin and Maharashtra Navnirman Sena (MNS) chief Raj Thackeray riling him at a poll rally Sunday for the Shiv Sena “sticking to” power in Delhi despite breaking up with BJP.
Raj had said that Uddhav should immediately ask Geete to resign as a mark of protest against the insult meted out to Shiv Sena.
Attacking BJP for ending its 25-year-old alliance with Shiv Sena, Raj had said that had party patriarch Balasaheb Thackeray been alive he would have ended the association a month ago.
Shiv Sena, ruling NDA’s second largest constituent with 18 Lok Sabha MPs, was upset over poor representation it got in the Modi government as well as Geete’s heavy industries portfolio, which it considered light weight. Geete, a sixth-time MP from Raigad in Konkan, had taken charge of the ministry after a delay of several days.
In the NDA government, during 1999, headed by Atal Bihari Vajpayee, the Shiv Sena had three Cabinet Ministers despite having fewer MPs. In 2002, it even got the coveted post of Lok Sabha speaker for senior leader Manohar Joshi.
Geete, however, said that he has not been given any instruction so far and therefore the question of his resigning does not arise.
“This is false news as I have not been given any instruction so far. So how does the question of my resignation arise,” said the Union Minister, who is at present in Mumbai.
He said any reports of his resignation are not true and noted that Shiv Sena contested the Lok Sabha polls as part of the NDA.
Having its own commercial bank will allow Alibaba greater control over many of its key services, including online payment and wealth management products
China’s e-commerce giant Alibaba, which completed the world’s largest ever initial public offering (IPO) this month, has won approval from Chinese authorities to establish a private bank as it diversifies into financial services.
Alibaba, through its subsidiary Zhejiang Ant Small and Micro Financial Services Group Co, will hold 30% of share capital of the new bank, the China Banking Regulatory Commission said.
Having its own commercial bank will allow Alibaba greater control over many of its key services, including online payment and wealth management products.
Alibaba is the latest company outside the financial sphere to win approval to start a bank in China. Beijing hopes private banks will help in its drive to open up the economy to more competition and get private capital to more parts of the economy.
Alibaba completed the biggest initial public offering ever this month by selling $25 billion of stock to investors keen to tap into the world’s biggest pool of Internet users.
Shanghai JuneYao Group, the parent of Juneyao Airlines, also received regulatory approval to set up its own bank and will own a 30% stake.
The CBRC made public in March to create five privately owned banks focused on smaller businesses that have limited access to credit.
On 25th July, the CBRC approved the establishment of three private banks, including Webank, funded by Chinese Internet giant Tencent.
Currently, China has only one private bank in service, China Minsheng Bank, which was founded in 1996 in Beijing.
Minsheng, listed in both Shanghai and Hong Kong, is the country’s first national bank founded by private capital.