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RBI Monetary Policy: Key Information To Know, Shaktikanta Das To Announce Decisions Today

Shaktikanta Das

RBI Monetary Policy: Key Information To Know, Shaktikanta Das To Announce Decisions Today

RBI Monetary Policy 2024: Reserve Bank of India Governor Shaktikanta Das will announce the bi-monthly policy today (February 8) amid expectations of continued pause on the key interest rate as inflation remains near the upper tolerance level of 6 per cent. Governor Das-headed Monetary Policy Committee (MPC) started its three deliberations on Tuesday (February 6). The MPC is entrusted with the responsibility of deciding the policy repo rate to achieve the inflation target, keeping in mind the objective of growth.

RBI Monetary Policy Time

Das will make the monetary policy announcement at 10 am.

Repo Rate

For a year, the Reserve Bank has kept the short-term lending rate or repo rate stable at 6.5 per cent.

The benchmark interest rate was last raised in February 2023 to 6.5 per cent from 6.25 per cent to contain inflation driven mainly by global developments.

Inflation

The retail inflation in the current financial year has declined after touching a peak of 7.44 per cent in July 2023, it is still high and was 5.69 per cent in December 2023, though within the Reserve Bank’s comfort zone of 4-6 per cent.

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Pause Expected

Shaktikanta Das

State Bank of India (SBI) in a report said the RBI is expected to continue its pause stance in upcoming policy.

“Strong US non-farm payroll data and wages seem to have pushed back on market expectations for a quick pivot to rate cuts,” it said, and added the first rate cut on the table could be from June to August period “looks the best bet now”.

The state-owned lender also expects the RBI will continue with the withdrawal of accommodation stance.

SBI further said the CPI is expected to come around 5.4 per cent in 2023-24 and 4.6 per cent to 4.8 per cent in the next fiscal (2024-25).

Experts across sectors are of the view that the central bank for the sixth time in a row will not tinker with the repo rate, which currently stands at 6.5 per cent mainly due to concerns over inflation.

The government has mandated the central bank to ensure the retail inflation based on the Consumer Price Index (CPI) remains at 4 per cent with a margin of 2 per cent on either side.

 

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In an off-cycle meeting in May 2022, the MPC raised the policy rate by 40 basis points and it was followed by rate hikes of varying sizes, in each of the five subsequent meetings till February 2023.

The repo rate was raised by 250 basis points cumulatively between May 2022 and February 2023.

RBI MPC Members

The MPC consists of three external members and three officials of the RBI.

Also Read: After Revenue Shocked the market, Alibaba Starts a $25 Billion Share Buyback, but investors are not impressed

Final Thought

With inflation numbers shifting, everyone’s attention is focused on the Reserve Bank of India’s (RBI) position on the repo rate as Governor Shaktikanta Das gets ready to make today’s monetary policy announcements. India’s financial stability will be greatly influenced by the central bank’s strategy, given that inflation is currently close to the RBI’s upper tolerance limit and economic indications point to cautious optimism. In light of a deliberate balancing act between containing inflation and promoting growth, most experts predict that the repo rate will remain on hold. The MPC’s decisions will affect short-term lending rates, but they will also determine India’s economic course going forward.

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Air India Express Takes Action Amid Ongoing Flight Cancellations, Assures Efforts to Alleviate Crisis

Air India

Air India Express Takes Action Amid Ongoing Flight Cancellations, Assures Efforts to Alleviate Crisis

A new statement from Air India Express stated that it was working to alleviate the problem, but the airline was still reeling from 24 hours of flight cancellations. On Wednesday, the airline terminated the contracts of some senior cabin crew members who had “reported sick” the day before. The number of workers who received notice of termination from the airlines is not yet known; however, news outlet PTI stated that at least 25 senior crew members were let go from the company. Nevertheless, several media outlets have reported that there might be up to 30 staff let go. The airline said in a letter of termination that it had received from one of its workers that a significant portion of its personnel had called in ill at the last minute. The letter stated, “This clearly points to a pre-meditated and concerted abstention from work without any justification.”

Air India Express also said, per the report, that the crew members’ actions led to the cancellation of several flights, which had an impact on the airline’s schedule and inconvenienced passengers. As a result, it immediately ended the involved employees’ contracts. “Your act is not only subversive of public interest but has also caused embarrassment, severe reputational damage, and serious monetary loss to the company,” the corporation stated in the letter terminating the employees.

AIR INDIA EXPRESS TO OPERATE 292 FLIGHTS TODAY

A representative for Air India Express said that despite the continuous interruptions to the airline’s flight operations, 292 flights would be operated on Thursday with assistance from Air India; 74 flights have been canceled. “Air India Express is doing everything within our power to minimize the disruption this unforeseen circumstance has caused to our guests.” Today, there will be 292 flights that we run. The representative stated, “We have mobilized all available resources, and Air India will help us by running on 20 of our routes.

Also Read: Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

OVER 100 EMPLOYEES REPORTED SICK LAST MINUTE

Air India Express CEO Aloke Singh revealed in a statement on Wednesday that the airline will be cutting back on flights over the next few days as a result of a considerable number of cabin crew members reporting unwell right before their planned shifts. The airline has already canceled over 90 flights.

“More than 100 of our coworkers in the cabin crew have abruptly reported sick before their scheduled flight duties, seriously interfering with our business operations. In a 350-word statement, the CEO stated that “the impact was disproportionate, disrupting over 90 flights even though other colleagues reported for duty because this action was mostly by colleagues assigned L1 roles.”

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Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

Air India Express

Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

Air India Express crisis: According to Air India Express, a portion of its cabin crew reported being unwell, forcing the airline to cancel certain flights. “A section of our cabin crew has reported sick at the last minute, starting last night, resulting in flight delays and cancellations,” an Air India Express official stated, as cited by the news agency. Our staff is aggressively resolving this problem to minimize any difficulty this may give to our visitors, even as we are interacting with the crew to learn the causes of these incidents.

Air India Express apologizes to travelers

The representative went on, “We want to emphasize that this does not represent the kind of service we aim to give and that we sincerely apologize to our visitors for this unplanned disturbance. Refunds in full or free rescheduling to another date are provided to guests who are affected by cancellations. It is required of our guests that, before leaving for the airport, they check to see whether their flight is disrupted. This comes after a union that represents a portion of the cabin crew at Air India Express said last month that the airline is being mishandled and that employees are not treated equally. The mishandling of the events, according to the Air India Express Employees Union (AIXEU), has also impacted staff morale.

Also Read: Passengers complain about Air India Express cancellations.

On social media, a few travelers expressed their displeasure at the unexpected flight cancellations. Air India Express responded to a passenger’s post on X (previously Twitter) on a canceled flight by stating that it was canceled “due to operational reasons.”. “As part of our service recovery process, you can either opt to reschedule the flight within the next 7 days or request a full refund through our chatbot, Tia…” the airline stated.

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Bank Employees Anticipate 5-Day Work Week as Key Approval Remains Pending

Bank

Bank Employees Anticipate 5-Day Work Week as Key Approval Remains Pending

Bank workers’ demands for a 5-day workweek are expected to be met shortly because the Indian Banks’ Association (IBA) and employee unions have already inked an agreement on the subject. The bank personnel anticipate receiving government clearance later in 2024; as of right now, only that is pending. The United Forum of Bank Unions and other bank employee unions have long advocated for a five-day workweek that excludes Saturdays. They guarantee that this won’t result in fewer hours spent providing customer service. A memorandum of understanding was subsequently signed in December 2023 between bank unions and the Indian Banks’ Association (IBA), which comprises both government-run and private institutions. A proposal for a 5-day workweek was included in this agreement, pending government approval.

The IBA and bank unions then signed the 9th Joint Note on March 8, 2024. The shift to a 5-day workweek with Saturdays and Sundays off was stated in the Joint Note, which was endorsed by the All India Bank Officers’ Confederation and the IBA. The government has the last say, even though the IBA and bank unions have reached an agreement. The Reserve Bank of India (RBI), which controls interbank transactions and banking hours, would also be consulted on the plan. The administration hasn’t set a formal timeframe for that. A few bank employees, however, said that they anticipate receiving the government’s warning by the end of this year or the beginning of 2025.

Also Read: Raymond reappoints Gautam Hari Singhania as MD for another five years

Saturdays will be recognized as official holidays under Section 25 of the Negotiable Instruments Act if they are authorized. It is stated that should the 5-day work week be adopted, the government will publish revised working hours that will extend the workday by forty minutes, from 9:45 a.m. to 5:30 p.m. Currently, the second and fourth Saturdays are closed for bank branches. Since 2015, bank unions have called for annual leave that includes all Saturdays and Sundays. In accordance with the terms of the 10th Bipartite Settlement, which was signed in 2015, the government, RBI, and IBA decided to make the second and fourth Saturdays holidays.

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