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RBI likely to hold key interest rates on Tuesday

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The RBI building in Mumbai.
The RBI building in Mumbai. Photo credit: AFP/Sajjad Hussain
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Photo credit: indianews.com
Photo credit: indianews.com

Mumbai: The Reserve Bank of India (RBI) is expected to hold interest rates at its monetary policy review on Tuesday and is more likely to cut rates by the end of the year when there is more clarity on the monsoons.

According to the Export-Import Bank of India, the rising trend in inflation seen over the last two months and the rainfall deficits are expected to weigh over the considerations of weak economic performance.

“Consequently, policy rate cut by the RBI in its third bi-monthly policy appears bleak. The RBI is likely to maintain status quo on rates in its bi-monthly policy meet on August 4,” it said.

Consumer price-indexed (CPI), or retail, inflation rose to an eight-month high of 5.4 percent in June riding on costlier food, fuel, housing, clothing and footwear.

While the CPI-urban for June inched higher to 4.55 percent, the CPI-rural jumped to 6.07 percent from 5.52 percent in May.

At its last review in June, RBI cut the repo rate, at which it lends short-term to commercial banks, from 7.5 percent to 7.25, but left other parameters like the cash reserve ratio (CRR) and statutory liquidity ratio (SLR) unchanged at 4 percent and 21.5 percent, respectively.

It was the third repo cut this year in June, while the central bank had indicated that there may not be any further cuts in the near term.

Giving the reasons for the June policy stance, RBI Governor Raghuram Rajan said plans for lower food output needed to be in place, global financial markets were volatile, factory output was recovering unevenly, services sector was emitting mixed signals, fuel inflation was up, exports were down and liquidity had improved.

According to India Ratings and Research, the RBI is likely to wait and watch on rates on Tuesday.

“Ind-Ra expects the policy stance to reflect RBI’s continued intention to anchor both inflation and inflationary expectations. This has become even more important for RBI after its agreement with the government to follow a framework of inflation targeting,” it said.

Meanwhile, American research firm Moody’s Analytics, in a report this week, warned against the NDA government’s moves to tamper with the autonomy of the Reserve Bank of India in deciding on interest rates as potentially damaging for the economy.

“We believe that a government-elected panel undermines the RBI’s independence. Moving to the new model would severely dent the RBI’s competency: Credibility would be lower, politics would drive decisions, and transparency would be reduced,” the economic research company said.

The government last week released the draft Indian Financial Code, which proposes to remove the RBI governor’s veto right in the monetary policy committee.

Besides taking away the RBI governor’s authority to veto interest rate decisions, the draft also proposed that the monetary policy committee would have four representatives of the government and only three from the central bank, including the RBI “chairperson”.

“Overall, we believe that tampering with the central bank’s independence would make it difficult to anchor inflation expectations. This would weigh on India’s economic prospects, particularly financial market stability,” said the Moody’s report.

“But given the criticism of the draft bill, it is unlikely to pass parliament,” it added.

Terming the measure as a “dangerous road ahead”, it said India’s monetary policy, with Governor Raghuram Rajan at the helm, has been effective.

(IANS)

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Hiring for Your Business? Get it Right First Time

If you can keep these things in mind, you should have no issues coming up with ideas that will help you to hire the right kinds of people for the business.

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You have to keep in mind the fact that there are a lot of different types of people .Pixabay

There are so many things that you need to keep in mind these days if you are running a business, and one of the essential things is the fact that you need to get your workforce right. There are a lot of people out there who you will have the chance to hire for your business, and it is so important to make the right choice here. There are a lot of things to take into account when you are doing this.

Think about what you want to get from your employees, as well as what you can do to make sure you are focused on bringing things forward in a business sense. There are a lot of things you need to think about when it comes time to hire the right staff, and there are plenty of things to consider. This is how you can get right the process of hiring, and make sure you choose the right people.

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Small businesses take advantage of co-working spaces like this one, in Ho Chi Minh City, VOA
Interview Them Yourself

One of the best ways of getting this right is making sure you are focused on conducting the interview yourself. This is one of the best ways of getting a feel for the person you are interviewing and making a judgement about what you think they are like. There are so many things that might play a role in your decision-making, and you should consider what it takes to get this right immediately.

Background Checks

Think about carrying out a background check on prospective candidates before you actually commit to hiring. Of course, a more professional and in-depth one will be carried out once they accept the job, but you can conduct your own before even offering them the role in the first place. Carrying out an online people search can be an eye-opener when it comes to improving the way you conduct yourself as a business, and making the right choice for the future.

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There are a lot of issues to keep in mind when you try to make a decision about who suits the business. Pixabay
Look at Their Qualifications

When hiring a person, it is important to make sure you keep an eye on their qualifications and suitability for the job at hand. There are so many different ideas and options that play a role in the employment process, but it’s clear that experience and qualifications play one of the biggest roles. So, you need to make sure you are looking at those people with the right qualifications.  

What is Their Personality Like?

Also consider what their personality is like and what you can do to ensure you are hiring someone who is going to fit. There are a lot of issues to keep in mind when you try to make a decision about who suits the business. This is why you have to make sure you keep this in mind so that you can hire the right sort of person for the task at hand.

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Think about what you want to get from your employees. Pixabay

If you can keep these things in mind, you should have no issues coming up with ideas that will help you to hire the right kinds of people for the business. You have to keep in mind the fact that there are a lot of different types of people, and the better you can do this, the better choices you will make.