Presidential Elections: Support Dr.Meira Kumar

Bihar and Jharkhand governments have no choice but to support Dr.Meira Kumar. As defeat of "Bihar ki Beti" will invariably bring Shame to the Biharis and Jharkhandis (or erstwhile unified Bihar). Do you think that, people of Bihar will leave Nitish Kumar Scott - free, if Dr.Meira Kumar loses ? So, Nitish Kumar has very little option left but to support, Dr.Meira Kumar.

Moreover, if Nitish Kumar wants to fall in the BJP's well calculated electoral TRAP no one can save him in the next election.

Also, I am surprised to see Mr.Navin Pattanayak, so easily chewing the RSS bait. Orissa is a state, where there is large chunk of Tribal Christian voters loyal to the BJD (Biju Janata Dal). I am still to fathom, BJD's sudden electoral gamble of siding with the RSS and the BJP; when Mr.Pattanayak has been maintaining distance from them since some time.

Besides, the election of Dr.Meira Kumar, who is educated, experienced and very sober, might also correct some of the historical mistakes of not making her father, the Prime Minister of India.

Also, I don't think all the Muslim and Christian MPs and MLAs from the TDP and TRS will ever support a RSS backed Candidate, who acted against Dalit Christian and Muslin reservations. Therefore, invariably cross voting will take place, which might give the underdog, Ms.Kumar, a win. Support Dr.Meira Kumar, give a conscience vote and make her the 2nd Female President of India.

All the best to Dr.Meira Kumar.....👍✌

Monday, November 17, 2014

Goldman Sachs expects RBI to cut rates by 50 basis points in 2015

Mumbai, November, 17, 2014: The Reserve Bank of India (RBI) will begin cutting interest rates in the first quarter of 2015 and reduce rates by 50 basis points during the course of the year, investment bank Goldman Sachs Group Inc. said in a note released on Monday. 

RBI’s benchmark signalling rate (repo rate) currently stands at 8%. One basis point is one-hundredth of a percentage point. 

“We have changed our rate call to build in 50 bps of rate cuts by RBI in 1H2015 (first half of 2015) from our earlier call of RBI on hold. We expect RBI to cut by 25bps each in February and April,” said Goldman economist Tushar Poddar in the note, explaining that the main driver of this call is the fall in global oil prices. 

“The recent sharper-than-expected fall in headline inflation, contained core prices, and no sharp increase in food prices despite a weak monsoon buttress the change in our rate view,” added the report. 

Goldman also cut its forecast for consumer price inflation in fiscal year 2016 to 5.8% compared with 7% earlier, below RBI’s target of 6% by January 2016.

To be sure, Goldman does not expect RBI to be aggressive in interest rate cuts due to the deeply entrenched inflation expectations.

“India has had an extended period of high and sticky inflation. This has led to deeply entrenched inflation expectations, which were at 13.5% in 3Q2014 for one-year ahead... Therefore, we think a prolonged period of weak inflation would be required for expectations to come down,” writes Poddar in the research note, adding that entrenched inflationary expectations, uncertainty about commodity prices, and the need to establish the credibility of the new inflation targeting framework may prevent steeper rate cuts.

Expectations of interest rate cuts have risen in recent months due to a quicker-than-anticipated fall in retail and wholesale inflation. Wholesale price inflation fell to 1.77% in October, while consumer price inflation fell to 5.52%. 

At 12.28pm, yield on the 10-year government bond was at 8.179%, compared with its Friday’s close of 8.217%. Bond yields and prices move in opposite directions. Since the beginning of October, the 10-year yield has fallen 33.4 bps to 8.179% from 8.514%. Year-to-date, the 10-year bond has dipped 64.50 bps to 8.179% from 8.825%.

Courtesy: Live Mint

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