Alert amid uncertainty: On RBI holding interest rates

The RBI has prudently decided to keep its powder dry for now, citing the “extreme uncertainty” that characterises the current outlook for inflation and economic activity. Observing that the “unprecedented shock” from the pandemic has left the economy stressed, the RBI said that while the monetary policy committee recognised the primacy of supporting a recovery, it was necessarily mindful of its inflation targeting mandate. The picture on prices is clouded by many uncertainties. While the provisional June CPI inflation reading of 6.1% had edged over the upper bound of the mandated medium-term goal of 4% plus/minus 2%, a spike in food prices as well as cost push pressures from higher transport fuel and raw material prices were combining to obscure the inflation outlook. Vowing to ensure that the policy stance remains ‘accommodative’ for as long as needed to revive growth, Governor Shaktikanta Das emphasised that the RBI was ready to act on rates once a durable reduction in inflation was

Consolidating control: On Sri Lanka elections

The Rajapaksas have consolidated their hold on power, garnering a near two-thirds majority in Sri Lanka’s Parliament. The victory was expected, but it is not often, under the proportional representation system, that a party reaches that milestone. The SLPP, founded four years ago by former President Mahinda Rajapaka, has won 145 seats, and with the help of minority allies, will reach the coveted 150 mark in a House of 225. The party may now have the numbers to amend the Constitution and undo the two-term limit and other curbs on presidential powers imposed by the 19th Amendment passed by a predecessor regime. The reasons behind this landslide are clear. Majoritarian nationalism, the party’s trump card, was boosted by the unprecedented disarray in the Opposition ranks. The people, yearning for development and debt relief, appear not to have forgotten the failings of the four-year rule of Maitripala Sirisena and Ranil Wickremesinghe — rivals who had come together in 2015 on a promise
Lead

Interpreting the Sri Lankan mandate

Jayadeva Uyangoda
Comment

A campaign in Kerala to subvert an alternative path

S. Ramachandran Pillai
 
Lead

An invisible humanitarian crisis in India

Harsh Mander

Why can’t we have desi rock in India’s many desi accents?

Ruchir Joshi

Hercules lived here: Megasthenes’s ‘Indika’

Aakar Patel

Title sponsor’s ‘withdrawal’: It was a good toss to lose

Suresh Menon
 
Open Page

Produce of the city

Parama Roy
Writer writing on computer paper sheet vector illustration, flat cartoon person editor write electronic book text top view, laptop with writing letter or journal, journalist author working
Open Page

When the running hand dropped out of the race

Tiny Nair
cheerful couple cooking dinner, prepearing food together at home
Open Page

A unisex recipe

Anjana Ravi