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<ul><li>The <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>) has postponed the upcoming meeting of <keyword id="6375120" type="ORGANIZATION" weightage="20" keywordseo="monetary-policy-committee">Monetary Policy Committee</keyword> (MPC).</li><li>The new dates will be announced ‘shortly’, according to the notice issued by India’s apex bank. </li><li>The government is yet to announce its new nominations for the committee with the tenure of the current external members — Ravindra Dholakia, Pami Dua and Chetan Gate — set to expire on September 30. </li></ul>The Reserve Bank of India (RBI) has postponed the meeting of the Monetary Policy Committee (MPC) that was scheduled to take place starting September 29 through to October 1. The new dates will be announced ‘shortly’, according to the <a href="https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR40014EDCE17EA504028927F4652FE40441B.PDF">RBI’s notice.</a> Even though the central bank did not specify why it had to push the meeting forward, it’s likely because the new members of the MPC haven’t been announced yet. The tenure for three of the external members — Ravindra Dholakia, Pami Dua and Chetan Gate — is set to expire on September 30. Government yet to announce MPC’s new faces The MPC consists of 6 members. Three members are from the central bank and the other three are external — nominated by the government. The central government members each hold a term of four years from the date of appointment and are not eligible for re-appointment. The MPC recently replaced Janak Raj, an executive director at the RBI and MPC member who retired in June, with Mridul Saggar. The RBI had earlier approached the government to extend the tenure for these three till 31 March 2021 in view of the coronavirus pandemic. But, the government turned the request down. A panel headed by the Department of Economic Affairs secretary Tarun Bajaj is currently on the lookout for new eligible candidates. The search committee also includes RBI Governor Shaktikanta Das. However, the government is yet to announce the new names for external MPC members. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/sbi-warns-customers-to-beware-of-whatsapp-calls-and-scam-messages/articleshow/78361332.cms">SBI warns customers to beware of WhatsApp calls and scam messages</a> <a href="https://www.businessinsider.in/finance/banks/news/banks-stocks-hdfc-icici-sbi-kotak-mahindra-indusind-react-to-sc-verdict-on-moratorium/articleshow/78358550.cms">Bank stocks gain as Supreme Court defers verdict on loan moratorium case to October 5</a> <a href="https://www.businessinsider.in/tech/apps/news/free-calls-on-google-meets-will-be-limited-to-60-minutes-starting-september-30/articleshow/78360190.cms">Free calls on Google Meets will be limited to 60 minutes starting September 30</a> <a href="https://www.businessinsider.in/finance/banks/news/supreme-court-inclined-to-excuse-moratorium-interest-on-interest-as-it-gives-the-government-another-two-weeks-to-file-detailed-affidavit/articleshow/78033878.cms">Loan moratorium — Supreme Court gives government till Thursday to file affidavit, next hearing scheduled for October 5</a>

RBI postpones Monetary Policy meeting as the hunt for three new MPC members continues

<ul><li>The Indian wearable market has declined by 10% in Q2 2024, its first ever decline.</li><li>The smartwatch segment has recorded a huge decline in shipments in Q2 2024.</li><li>The earwear segment has remained flat, while the <keyword id="22725791" type="General" weightage="20" keywordseo="smart-ring-segment" source="keywords">smart ring segment</keyword> is going strong.</li></ul> The <keyword id="22725790" type="General" weightage="100" keywordseo="Indian-wearables-market" source="keywords">Indian wearables market</keyword> has declined for the first time ever, recording a 10% decline in shipments in Q2 2024. India’s wearables market shipped 29.5 million devices in Q2 2024. According to a report by the International Data Corporation, the first half of 2024 also reported a decline of 4.7%, with 55.1 million units shipped during the first six months. The decline in shipments includes cautious inventory stocking by the vendors looking to clear existing stock and fewer new launches in the market. <h2><keyword id="20615528" type="General" weightage="20" keywordseo="smartwatch-shipments" source="keywords">Smartwatch shipments</keyword> decline</h2>The <keyword id="22725792" type="General" weightage="20" keywordseo="smartwatch-category" source="keywords">smartwatch category</keyword> recorded a decline of 27.4% as shipments declined from 12.77 million devices in Q2 2023 to 9.27 million in Q2 2024. As per the report, innovation exhaustion and existing channel inventory of older models were the key reasons for the decline in shipments. The Smartwatch average selling price (ASP) dropped to $20.6 from $25.6 a year ago due to discounts being offered to clear inventory. The wristband category however continued to grow, recording a 23.4% growth in shipments. The earwear category remained flat, with a 0.7% shipment growth from 19.95 million in Q2 2023 to 20.09 in Q2 2024. <keyword id="11974058" type="General" weightage="20" keywordseo="ultrahuman" source="Orion">Ultrahuman</keyword> leads the smart ring segment The smart ring market has started making its mark, with over 72 thousand smart rings shipped in Q2 2024 with an ASP of $204.6. Ultrahuman leads the market share in the smart rings segment with a market share of 48.4%, followed by Pi Ring at 27.5% and Aabo with a 10.5% share. <h2>Smartwatch market share in India</h2><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 2024 </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 2023 </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Noise </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">25.7% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.6% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fire-Boltt </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">24.2% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.8% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">boAt </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.6% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.2% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Titan </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.9% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.4% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Boult </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.9% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.4% </td></tr></tbody></table> Source: IDC The top two companies, Noise and Fire-Boltt enjoy nearly half of the market share, with Noise leading the segment with a 25.7% market share and Fire-Boltt a close second at 24.2%. <h2>TWS market share in India</h2><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 2024 </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 2023 </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">boAt </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">34% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">35.3% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Boult </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.9% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.6% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Noise </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.2% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.6% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oppo + OnePlus </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.4% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.5% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Realme </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.4% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">4% </td></tr></tbody></table> Source: IDC boAt has emerged as the market leader in the TWS segment in Q2 2024 despite a decline in its market share. The company leads the market with a 34% market share, with Boult a distant second with a 12.9% market share. <h2>Online channels continue to be the preferred mode</h2>Online channels continued to be the preferred mode with their share increasing to 63.4% in Q2 2024 from 62% in Q1 2024. “The offline channel remains underutilised, often serving merely as a means for brands to offload excess inventory. Due to cost pressures, many brands are shifting their focus toward e-tailer channels, particularly during festive periods. While several smaller brands rely on offline channels, the major players remain heavily dependent on online channels,” said Anand Priya Singh, Market Analyst, Smart Wearable Devices, IDC India. <h2>Average selling price falls</h2>The average selling price (ASP) of wearables declined to a new low, falling by 0.3% from $21 to $18.8 in Q2 2024. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/unicommerce-esolutions-ipo-allotment-how-to-check-allotment-ipo-gmp-listing-date-and-more/articleshow/112393219.cms">Unicommerce eSolutions IPO allotment – How to check allotment, IPO GMP, listing date and more</a> <a href="https://www.businessinsider.in/finance/banks/news/rbi-mpc-meet-cheque-clearing-time-reduced-upi-limit-increased-for-tax-payment/articleshow/112366099.cms">RBI MPC meet – Cheque clearing time reduced, UPI limit increased for tax payment</a> <a href="https://www.businessinsider.in/business/news/ola-wants-to-re-enter-the-quick-commerce-business-to-take-on-blinkit-and-swiggy-instamart/articleshow/112364583.cms">Ola wants to re-enter the quick commerce business to take on Blinkit and Swiggy Instamart</a>

India’s wearables market decline for the first time as smartwatch shipments fall

<ul><li>RBI Governor <keyword id="6359111" type="General" weightage="50" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> has announced the introduction of <keyword id="18348799" type="General" weightage="20" keywordseo="conversational-payments" source="Orion">conversational payments</keyword> on <keyword id="6358921" type="General" weightage="100" keywordseo="upi" source="Orion">UPI</keyword>.</li><li>Conversational payment involves the use of AI to make payments easier.</li><li>The central bank has also announced offline UPI payments using NFC end an increase in <keyword id="13424650" type="General" weightage="50" keywordseo="upi-lite" source="Orion">UPI Lite</keyword> limit.</li></ul>UPI (Unified Payments Interface) has made payments easier but the endeavour to simplify procedures is an ongoing process. Currently it involves QR code scanning, clicking and entering PIN for each transaction. Now, India's central bank is bringing in AI (artificial intelligence) to make it easier to pay with <keyword id="18349905" type="General" weightage="20" keywordseo="conversational-upi" source="Orion">conversational UPI</keyword>. The Reserve Bank of India (RBI)’s Governor Shaktikanta Das made major announcements related to UPI at the<a href="https://www.businessinsider.in/policy/economy/news/rbi-policy-mpc-holds-fire-and-keeps-repo-rate-unchanged-inflation-forecast-raised/articleshow/102594613.cms"> Monetary Policy Committee</a> (MPC) meeting. The central bank held its third bi-monthly monetary policy meeting for FY24 on Thursday. At the meet, the governor announced the decisions of the committee. <cmsannotation type="cmsannotation" annotationid="UPI gets AI for conversational payments" comment="subhead" text="UPI gets AI for conversational payments">UPI gets AI for conversational payments</cmsannotation> UPI will soon get artificial intelligence (AI) as the central bank looks to make UPI transactions more interesting. Conversational payments will involve the users engaging in conversation with AI-powered systems to make payments. “Conversational payments on UPI will enable users to engage in conversation with AI systems to make payments,” RBI governor Shaktikanta Das said at the meeting. This has been done with an intention of “harnessing new technologies for enhancing the digital payments experience for users”. While it is not exactly clear how conversational payments will work, the central bank will likely push for an AI chatbot like ChatGPT that will make it easier for users to make payments. "This channel will be made available in both smartphones and feature phones-based UPI channels, thereby helping in the deepening of digital penetration in the country," the central bank said. <cmsannotation type="cmsannotation" annotationid="Offline UPI payments using NFC" comment="subhead" text="Offline UPI payments using NFC">Offline UPI payments using NFC</cmsannotation> Das has also announced the introduction of offline UPI payments using near field communication (NFC) technology through UPI Lite. To recall, UPI Lite was introduced in September 2022 and allows users to use on-device wallets to make instant payments without the need of a UPI PIN. The new announcement will make it easier for customers to make payments, as all you will have to do is tap your smartphone on the point-of-sale (PoS) machine to make the payment. “To promote the use of UPI-Lite, it is proposed to facilitate offline transactions using NFC technology. This feature will not only enable retail digital payments in situations where internet or telecom connectivity is weak or not available, it will also ensure speed, with minimal transaction decline,” the MPC statement said. <cmsannotation type="cmsannotation" annotationid="Increase in UPI Lite limit" comment="subhead" text="Increase in UPI Lite limit">Increase in UPI Lite limit</cmsannotation> The central bank has also announced an increase in the limit of UPI Lite transactions from the existing ₹200 per transaction to ₹500 per transaction. However, the bank continues to restrict the overall limit per instrument to ₹2,000. <cmsannotation type="cmsannotation" annotationid="Experts welcome move" comment="subhead" text="Experts welcome move">Experts welcome move</cmsannotation> Experts have welcomed the central bank’s move towards conversational payments and push for offline UPI. “Offline payments in UPI will add to the customer convenience and on the other hand, facilitating conversational payments on UPI through artificial intelligence is a futuristic move and will have a transformative impact on digital payments,” said Aditya Damani, founder &amp; CEO, Credit Fair. “The RBI Governor's announcement today regarding the introduction of conversational payments and offline functionality in UPI Lite marks a pivotal step that is set to reshape India's economic trajectory. These advancements hold the potential to revolutionise the digital payment ecosystem and drive financial inclusion to new heights,” said Rajsri Rengan, India Head of Development, Banking and Payments, at FIS. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/sbfc-finance-ipo-how-to-check-allotment-status/articleshow/102564696.cms">SBFC Finance IPO – How to check allotment, listing date, GMP and more</a> <a href="https://www.businessinsider.in/tech/news/hp-omen-17-gaming-laptop-review-price-performance-and-design/articleshow/102570650.cms">HP OMEN 17 review: A powerful but heavy gaming laptop with a large display</a> <a href="https://www.businessinsider.in/business/auto/news/auto-sales-slip-5-percent-in-july-companies-build-up-inventory-ahead-of-the-festive-season/articleshow/102494498.cms">As auto sales slip in July, dealers pin hopes on upcoming festive fervour</a>

UPI joins the AI bandwagon, offline payments get a push

<ul><li>With an increase in <keyword id="6354680" type="General" weightage="20" keywordseo="credit" source="Orion">credit</keyword> offtake, the <keyword id="568129" type="General" weightage="20" keywordseo="credit-deposit-ratio" source="Orion">credit deposit ratio</keyword> reached almost 75.04% as of April 7, 2023. </li><li>In April, the banking system's liquidity changed from a deficit to a surplus due to government spending and the Reserve Bank of India's (RBI) foreign exchange intervention.</li><li>In the current environment of rising interest rates, the median 1-year MCLR for Scheduled Commercial Banks increased from 8.55% in March 2023 to 8.6% in April 2023.</li></ul>In March 2023, both lending and deposit rates rose, but the rate of increase was faster for the deposit rates than lending rates. Moreover, the rates for fresh business (new loan taken by a borrower) have increased at a faster clip when compared to rates for outstanding business (old loan that is yet to be repaid). March also witnessed a surge in <keyword id="632526" type="General" weightage="20" keywordseo="credit-demand" source="Orion">credit demand</keyword> due to growth seen in personal loans, working capital loans, and the participation of non-banking financial companies (NBFCs) resulting in double-digit growth, according to a BFSI Research report by credit rating agency CareEdge. <cmsannotation type="cmsannotation" annotationid="Credit deposit ratio reaches almost 75.04% on April 7" comment="subhead" text="Credit deposit ratio reaches almost 75.04% on April 7"><keyword id="5173780" type="General" weightage="20" keywordseo="credit-deposit" source="Orion">Credit deposit</keyword> ratio reaches almost 75.04% on April 7</cmsannotation> However, the mobilisation of deposits has been relatively low, and the credit offtake has increased, causing the credit deposit ratio to reach almost 75.04% as on April 7, 2023. At the beginning of FY23, the banking system had a surplus of ₹6.3 lakh crore in liquidity. However, it has reduced over time and eventually turned into a deficit towards the end of FY23. Hence liquidity had been injected into the system. In April, the banking system's liquidity changed from a deficit to a surplus due to government spending and the Reserve Bank of India's foreign exchange intervention. However, the liquidity infusion was somewhat offset by the redemption of long-term repo operation (LTRO) and targeted long-term repo operation (TLTRO). LTRO and TLTRO are monetary policy tools used by the RBI to inject liquidity into the banking system. <cmsannotation type="cmsannotation" annotationid="Weighted average call rate rises to 6.52% as on April 21" comment="subhead" text="Weighted average call rate rises to 6.52% as on April 21">Weighted average call rate rises to 6.52% as on April 21</cmsannotation> To maintain liquidity at a neutral level, the RBI may continue to conduct variable rate reverse repo (VRRR) auctions – a tool used by the RBI to manage liquidity in the banking system. There has been an increase in the short-term weighted average call rate (WACR) from 3.53% as of April 22, 2022, to 6.52% as of April 21, 2023. This rise in WACR can be attributed to a combination of higher policy rates and a reduction in liquidity within the system. The WACR is an indicator of the overall liquidity conditions in the banking system. <cmsannotation type="cmsannotation" annotationid="Lending rates on the rise" comment="subhead" text="Lending rates on the rise">Lending rates on the rise</cmsannotation> The weighted average lending rate (WALR) – which is the weighted average of all the interest rates that a bank charges on its outstanding loans – on fresh loans has continued to increase month-over-month (M-o-M). For public sector banks (PSBs) it’s up by 11 basis points (bps), for private sector banks (PVBs) by 21 bps, and for scheduled commercial banks (SCBs) by 8 bps. The lending rates on fresh loans for PSBs, PVBs, and SCBs have surpassed their levels in March 2020. In addition, the WALR on outstanding loans has also increased M-o-M across all segments – for PSBs by 7 bps, for PVBs by 4 bps, and for SCBs by 5 bps. Interestingly, foreign banks have experienced a decrease in their lending rates. The spread between the WALR on outstanding loans and WALR on fresh loans for PSBs and PVBs has continued to narrow M-o-M due to a higher increase in WALR on fresh loans than on outstanding loans. In the current environment of rising interest rates, the median 1-year MCLR (marginal cost of funds-based lending rate) for SCBs increased from 8.55% in March 2023 to 8.60% in April 2023. Despite the Monetary Policy Committee (MPC) taking a pause from rate increase at its last meeting, banks have continued to raise rates. This has had a faster impact on the lending rate of new loans, while older loans are re-priced based on specific repricing dates. As a result, the spread between the WALR for outstanding loans and the WALR for new loans is expected to narrow in the short term and stabilise in the medium term.

Deposit rates rise faster than lending rates in March 2023: CareEdge

<ul class="summary-list"><li>The <keyword id="106488" type="CITY" weightage="60" keywordseo="Bank-of-England">Bank of England</keyword> said it now expects <keyword id="22195" type="COMPANY" weightage="60" keywordseo="Inflation">inflation</keyword> to surge above 3% as the economy recovers.</li><li>Yet it kept its bond-buying target unchanged at $1.25 trillion and <keyword id="6371181" type="UNKNOWN" weightage="60" keywordseo="interest-rates">interest rates</keyword> at record lows.</li><li>UK inflation jumped to 2.1% year on year in May, above the central bank's 2% target.</li></ul>The Bank of England <a href="https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2021/june-2021">said</a> on Thursday that it now expects UK inflation to surge above 3% as the economy reopens from lockdown. But it nonetheless maintained its bond-buying target at $1.25 trillion, saying sharp price rises should be temporary.Departing chief economist <keyword id="2611548" type="PERSON" weightage="60" keywordseo="Andy-Haldane">Andy Haldane</keyword> was the only one of nine <keyword id="6357126" type="DEFINITION" weightage="60" keywordseo="Monetary-Policy">monetary policy</keyword> committee (MPC) members to vote against the plans. Raising concerns that strong inflation may stick around, he voted to cut the bond-buying package by 50 billion pounds ($70 billion).The Bank also decided to keep its main interest rate at the record-low level of 0.1%, in a unanimous vote, on top of the 8-1 decision to keep the bond-buying package steady at 895 billion pounds ($1.25 trillion).The<a href="https://markets.businessinsider.com/currencies/gbp-usd"> pound</a> fell after the announcement, and was around 0.44% lower against the dollar at $1.389.UK inflation <a href="https://markets.businessinsider.com/news/stocks/uk-inflation-cpi-britain-economy-rise-lockdown-reopening-bank-england-2021-6-1030526854">jumped 2.1% in May</a> year-on-year, the biggest rise since July 2019 and above the Bank of England 2% target. It was a bigger rise than the central bank had expected.The Bank said on Thursday that it now expects inflation to jump above 3% for a temporary period, "owing primarily to developments in energy and other commodity prices." In May, it had only expected inflation to rise temporarily above 2%.Yet the Bank's MPC said it expects inflation to fall back again as commodities price rises fade. However, it said there are "risks around this central path, and it is possible that near-term upward pressure on prices could prove somewhat larger than expected."Central banks in advanced economies are dealing with the strongest inflation in years, as growth rebounds sharply after the COVID-19 slump. Too much inflation is seen as disruptive for economies, and major central banks try to keep it at around 2%.In the US - where year-on-year inflation <a href="https://www.businessinsider.com/cpi-inflation-may-supply-bottlenecks-shortages-price-growth-reopening-demand-2021-6">hit 5% in May</a> - the <keyword id="6355253" type="UNKNOWN" weightage="60" keywordseo="federal-reserve">Federal Reserve</keyword> has signaled a slight shift in its expectations for monetary policy. Officials now predict the central bank will <a href="https://www.businessinsider.com/federal-reserve-interest-rate-projections-fomc-june-inflation-monetary-policy-2021-6">raise rates in 2023</a>, according to "dot plot" estimates released last week.But Paul Dales, chief UK economist at consultancy Capital Economics, said: "Other than the [Bank of England's] MPC noting the growing upside risks to inflation at today's policy meeting, there were no real signs that it is thinking about tightening policy sooner, à la the Fed."We think policy will be tightened much later than the mid-2022 date the <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> have assumed."

The Bank of England says it expects inflation to surge above 3%, but keeps its $1.25 trillion bond-buying target for now

Mumbai, Mar 27 () Following are the highlights of the seventh bi-monthly monetary policy statement for 2019-20 by the RBI amid COVID-19 pandemic: * Monetary Policy Committee (MPC) advances meeting scheduled for Apr 1-3 * Repo rate slashed by 75 basis points to 4.4% * Reverse repo rate cut sharply by 90 basis points to 4% making unattractive for banks to deposit funds * MPC votes unanimously for a reduction in the policy repo rate * MPC decides to continue with the accommodative stance as long as it is necessary * Committee votes 4:2 in favour of rate cut; unanimous on change in stance * 2 MPC members Chetan Ghate and Pami Dua voted for a 50 bps rate cut * Several measures taken to infuse liquidity of about Rs 3.74 lakh crore into the financial system * RBI to undertake repo operation to infuse Rs 1 lakh crore * Cash Reserve Ratio (CRR) cut sharply by 100 bps to 3 per cent releasing Rs 1.37 lakh cr into the system * RBI assures to work in mission mode, monitoring the evolving financial market and macroeconomic conditions * MPC for the first time advances meeting date and refrains from giving next meeting date in the wake of evolving situation * GDP growth rate of 5% for 2019-20 at risk from the impact of pandemic * Global slowdown to deepen with adverse implication for India; crude oil slump upside for country * Upside growth impulses to emanate from monetary, fiscal measures and the early containment of COVID-19 * Food prices to soften further on back of record foodgrain production * MPC refrains from giving out growth, inflation outlook for coming fiscal on uncertain outlook * RBI permits all lending institutions to allow 3-month moratorium on payment of installments on term loans * Moratorium on term loan, deferring of interest on working capital will not classify as default * RBI urges banks and other financial institutions to do all they can to keep credit flowing * All instruments - conventional and unconventional - on table to support financial stability and revive growth * RBI assures that banking system in India safe; deposits safe in private bank; public should not resort to panic withdrawal * RBI says macroeconomic fundamental stronger than that in aftermath of 2008 financial market crisis * Last tranche of the capital conservation buffer (CCB) for banks deferred for 6 months to Sep * The minutes of the MPC to be published by April 13. DP BAL ANSANSANS

Highlights of RBI's monetary policy statement

Mumbai, Mar 27 () Following are the highlights of the seventh bi-monthly monetary statement for 2019-20 by the RBI amid COVID-19 pandemic: * Monetary Policy Committee (MPC) advances meeting scheduled for Apr 1-3 * Repo rate slashed by 75 basis points to 4.4% * Reverse repo rate cut sharply by 90 basis points to 4% making unattractive for banks to deposit funds * MPC votes unanimously for a reduction in the policy repo rate * MPC decides to continue with the accommodative stance as long as it is necessary * Committee votes 4:2 in favour of rate cut; unanimous on change in stance * 2 MPC members Chetan Ghate and Pami Dua voted for a 50 bps rate cut * Several measures taken to infuse liquidity of about Rs 3.74 lakh crore into the financial system * RBI to undertake repo operation to infuse Rs 1 lakh crore * Cash Reserve Ratio (CRR) cut sharply by 100 bps to 3 per cent releasing Rs 1.37 lakh cr into the system * RBI assures to work in mission mode, monitoring the evolving financial market and macroeconomic conditions * MPC for the first time advances meeting date and refrains from giving next meeting date in the wake of evolving situation * GDP growth rate of 5% for 2019-20 at risk from the impact of pandemic * Global slowdown to deepen with adverse implication for India; crude oil slump upside for country * Upside growth impulses to emanate from monetary, fiscal measures and the early containment of COVID-19 * Food prices to soften further on back of record foodgrain production * MPC refrains from giving out growth, inflation outlook for coming fiscal on uncertain outlook * RBI permits all lending institutions to allow 3-month moratorium on payment of installments on term loans * Moratorium on term loan, deferring of interest on working capital will not classify as default * RBI urges banks and other financial institutions to do all they can to keep credit flowing * All instruments - conventional and unconventional - on table to support financial stability and revive growth * RBI assures that banking system in India safe; deposits safe in private bank; public should not resort to panic withdrawal * RBI says macroeconomic fundamental stronger than that in aftermath of 2008 financial market crisis * Last tranche of the capital conservation buffer (CCB) for banks deferred for 6 months to Sep * The minutes of the MPC to be published by April 13. DP BAL ANSANS

Highlights of RBI's monetary statement

(Eds: Adding details) Mumbai, May 22 () Painting a gloomy picture of the economy, the Reserve Bank of India (RBI) on Friday said the impact of COVID-19 is more severe than anticipated and the GDP growth during 2020-21 is likely to remain in the negative territory. The outlook of inflation also remains "highly uncertain", RBI Governor Shaktikanta Das said while announcing a 40-basis point cut in the repo rate as part of the monetary measures to deal with the current crisis. It is the second sharp cut in the key policy rate in two months. On March 27, the Monetary Policy Committee (MPC), the rate-setting panel of the RBI, had cut the key short-term lending rate by 75 basis points. Given all the uncertainties related to the lockdown and social distancing, he said, "GDP (gross domestic product) growth in 2020-21 is estimated to remain in negative territory, with some pick-up in growth impulses from second half of 2020-21 onwards." Observing that the risk to the growth are "gravest", in an address through television, the governor said "the combined impact of demand compression and supply disruption will depress economic activity in the first half of the year". Even if the economic activities are restored in a phased manner, the combination of fiscal, monetary and administrative measures being currently undertaken would create conditions for a gradual revival in activity only in the second half of 2020-21, he added. "Nonetheless, downside risks to this assessment are significant and contingent upon the containment of the pandemic and quick phasing out of social distancing/lockdowns," Das said, adding that much would depend on how quickly the COVID-19 curve flattens and begins to moderate. The end-May 2020 release of NSO on national income should provide greater clarity, enabling more specific projections of GDP growth in terms of both magnitude and direction, he said. Das-headed MPC, whose meeting was advanced, was of the view that the macroeconomic impact of the pandemic is turning out to be more severe than initially anticipated, and various sectors of the economy are experiencing acute stress. Also, the impact of the shock was compounded by the interaction of supply disruptions and demand compression. In view of the virus crisis, the three-day meeting of the rate-setting body was advanced to May 20-22 from the earlier scheduled date of June 3-5. "The recent release of macroeconomic data, that for the first time revealed the damage wrought by COVID-19, brought forward the need for an off-cycle meeting of the MPC," the governor said. He said domestic economic activity has been impacted severely by the two-month lockdown. The top-six industrialised states that account for about 60 per cent of industrial output are largely in red or orange zones. Giving details, he said electricity and petroleum products consumption -- indicators of day-to-day demand -- have plunged into steep declines. The double whammy in terms of losses of both demand and production has, in turn, taken its toll on fiscal revenues, he said. Investment demand has been virtually halted by a decline of 36 per cent in the production of capital goods in March, which was coincident with a contraction of 27 per cent in imports of capital goods in March and 57.5 per cent in April. "The biggest blow from COVID-19 has been to private consumption, which accounts for about 60 per cent of domestic demand," Das said in his nearly 30 minutes address. He said that by all counts, the macroeconomic and financial conditions are austere. "The global economy is inexorably headed into recession." As he projected a grim outlook for the economy, Das also said that "amidst this encircling gloom", agriculture and allied activities have provided a beacon of hope on the back of an increase of 3.7 per cent in foodgrains production to a new record. A ray of hope also comes from the forecast of a normal southwest monsoon in 2020 by the India Meteorological Department. NKD CS HRS

2020-21 GDP growth likely to remain in negative territory: RBI Guv

Mumbai, Feb 6 () Following are the highlights of RBI's sixth bi-monthly monetary policy statement, 2019-20: * Policy rate kept unchanged at 5.15 pc * GDP growth for 2020-21 fiscal pegged at 6 pc * Upward bias expected in overall food prices on account of vegetables, pulses * Accommodative stance to revive growth maintained; inflation to remain elevated in short-run * Retail inflation projection revised upwards to 6.5 pc for January-March quarter * Breakout of Coronavirus may impact tourist arrivals, global trade * Rationalisation of personal income tax rates in the 2020-21 Budget to support domestic demand * Need for adjustment in interest rates on small saving schemes outlined * Pricing of loans by banks for the medium enterprises to be linked to an external benchmark effective April 1 * Time for restructuring of GST-registered MSME loans extended till December 2020, from March 2020 at present * Revised regulations for housing finance companies to be issued * RBI to periodically publish a composite 'Digital Payments Index' (DPI) from July 2020 to capture the extent of digitisation of payments * Framework for a Self-Regulatory Organisation (SRO) for digital payments to be issued * Pan India Cheque Truncation System (CTS) to be made operational by September * Extension of date of commencement of commercial operations of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by one year, allowed * Crude prices likely to remain volatile * Foreign exchange reserves stood at USD 471.4 billion on February 4, 2020 * Net FDI rose to USD 24.4 billion in April-November 2019, against USD 21.2 billion a year ago * Net foreign portfolio investment (FPI) stood at USD 8.6 billion in 2010-20 (till February 4) as against net outflows of USD 14.2 billion in the year ago period * All six members of Monetary Policy Committee vote in favour of maintaining status quo on interest rate * Next meeting of the MPC scheduled during March 31, April 1 and 3, 2020. JD ANSANS

Highlights of RBI's sixth bi-monthly monetary policy statement for 2019-20

<ul><li>The <keyword id="52659" type="ORGANIZATION" weightage="20" keywordseo="nobel-prize">Nobel Prize</keyword> in Physics 2020 will be shared by three laureates for discovering ‘the darkest secrets of the universe’.</li><li>One half of the Nobel Prize in Physics has been awarded to Roger Penrose for discovering that <keyword id="6409890" type="UNKNOWN" weightage="20" keywordseo="black-hole">black hole</keyword> formation is a robust prediction of the <keyword id="978810" type="PERSON" weightage="20" keywordseo="General-Theory-of-Relativity">general theory of relativity</keyword>. </li><li>The other half of the Nobel Prize in Physics this year will be shared by Reinhard Genzel and Andrea Ghez for the discovery of a supermassive compact object at the center of the galaxy. </li></ul>The Nobel Prize in Physics this year will be split between three laureates. One half goes to Roger Penrose for the discovery that black hole formation is a robust prediction of the general theory of relativity. The other half will be shared by Reinhard Genzel and Andrea Ghez for the discovery of a supermassive compact object at the centre of the galaxy. This makes Ghez the fourth woman to will a Nobel Prize in Physics. “This year’s prize is about the darkest secrets of the universe,” said Secretary General Göran K. Hansson at the press briefing. In addition to the award and the prestige that comes with it, the winners also get a gold medal and 10 million Swedish kronor ($1.18 million). They were chosen by the <keyword id="792484" type="ORGANIZATION" weightage="20" keywordseo="Nobel-Assembly">Nobel Assembly</keyword>, composed of 50 voting members, who will also announce awards for research in chemistry, literature, peace, and economics over the coming week. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nobel Prize category </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Award Declaration Date </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><a href="https://www.businessinsider.in/international/news/harvey-j-alter-michael-houghton-and-charles-m-rice-jointly-wins-the-2020-nobel-prize-in-medicine/articleshow/78490602.cms">Physiology or Medicine</a> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">October 5 (Announced) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Physics </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">October 6 (Today) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Chemistry </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">October 7 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Literature </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">October 8 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Peace </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">October 9 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Economic Sciences </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">October 12 </td></tr></tbody></table> Headquartered at the Karolinska Institutet in Sweden's capital city, Stockholm, the Nobel Assembly recognises scientists for their notable contributions to their respective fields. “This is not just an adventure coming to its triumphant conclusion. It's a new one beginning as we grow ever close to the horizons of the black holes, nature may have new surprises in store,” said member of the Nobel Committee for Physics, Ulf Danielsson. Notable past winners of the Nobel Prize in Physics Last year, one half of the Nobel Prize in Physics went to James Peebles ‘for theoretical discoveries in physical cosmology,’ and the other half was shared by Michel Mayor and Didier Queloz ‘for the discovery of an exoplanet orbiting a solar-type star. <div type="image" title="2019 winners of nobel prize physics" msid="78512403" hostid="261" caption="&amp;lt;p&amp;gt;2019 winners of the Nobel Prize for Physics&amp;lt;/p&amp;gt;"></div> The youngest person to ever win this award is Lawrence Bragg. He won the <keyword id="486027" type="PERSON" weightage="20" keywordseo="Nobel-prize-for-Physics">Nobel Prize for Physics</keyword> at the age of 25 with his father, William Bragg, for creating the first-ever x-ray spectrometer back in 1915. <div type="image" title="Screenshot (20)_edited" msid="78512462" hostid="261" caption="&amp;lt;p&amp;gt;Sir William Henry Bragg (L) and his son William Lawrence Bagg (R)&amp;lt;/p&amp;gt;"></div> More recently, in 2018, Arthur Ashkin is the oldest person to bag a Nobel Prize for Physics at the age of 96. He was awarded ‘for the optical tweezers and their application to biological systems’ . Ashkin passed away last month, on September 21, at the age of 98. Since the Nobel Prizes were set up in 1895, only three women have won the coveted award — Marie Curie in 1903, Maria Goeppert-Mayer in 1963 and Donna Strickland in 2018. Marie Curie also won another Nobel Prize, however in the field of Chemistry, in 1911. The only person to win two Nobel Prizes is John Bardeen, both in physics. He first won in 1956 for inventing the transistor and again in 1972 for discovering the transistor effect. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-wipro-and-hcl-tech-expected-to-announce-more-deals-more-money-and-more-savings-in-second-quarter/articleshow/78507656.cms">TCS, Infosys, Wipro and HCL Tech expected to announce more deals in the second quarter</a> <a href="https://www.businessinsider.in/policy/economy/news/mpc-to-meet-tomorrow-as-new-external-members-come-on-board/articleshow/78510248.cms">MPC to meet tomorrow as new external members come on board</a> <a href="https://www.businessinsider.in/india/news/cinema-halls-to-reopen-from-october-15-these-are-the-guidelines-and-sops-to-be-followed-at-all-cinema-halls-/articleshow/78508895.cms">Government issues guidelines for re-opening cinema halls — 50% capacity, one-seat distance, compulsory masks and other measures</a>

Nobel Prize in Physics 2020 goes to Roger Penrose, Reinhard Genzel and Andrea Ghez for discovering ‘the darkest secrets of the universe’

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Anthony Devlin/Getty Images; Samantha Lee/Business InsiderBank of England Governor Mark Carney.</div></div></div><ul><li>The Bank of England is set to hike interest rates for just the second time since the financial crisis later on Thursday.</li><li>Britain's central bank is expected to raise rates from 0.5% to 0.75%, taking the UK's base rate of interest to its highest level since March 2009.</li><li>Markets are pricing a more than 90% chance of a hike but UBS strategist John Wraith says a hike on Thursday is an "unnecessary risk."</li></ul> LONDON - At lunchtime today, the <a href="http://uk.businessinsider.com/category/bank-of-england">Bank of England</a> looks set to raise interest rates <a href="http://uk.businessinsider.com/bank-of-england-interest-rate-rise-brexit-mark-carney-2017-11">for just the second time since the financial crisis.</a>If financial market expectations are met, Britain's central bank should raise rates from 0.5% to 0.75%, taking the UK's base rate of interest to its highest level since March 2009. Markets are pricing a more than 90% chance of a hike, according to the latest data.The rate hike is set to be one of the most divisive decisions in recent bank history, with opinions split on whether or not increasing borrowing costs will be a good idea going forward.Governor Mark Carney and the other eight members of the bank's rate setting Monetary Policy Committee have been signalling that a hike is likely to come at some point in 2018 since their last hike in November last year, and Thursday looks like the day it will happen.Many had expected a hike in May, but weaker than expected data stopped the committee from doing so. Now, however, the time - if not perfect - is right to raise rates."There is only a very remote possibility that the BOE won't hike rates on Thursday," Kathleen Brooks, research director at Capital Index said in an email.Carney and his team's problem is that markets are now so convinced that a rate hike is coming, that the committee's credibility would be under threat if it were to leave rates on hold. Throughout his tenure as governor, Carney has faced accusations of being a so-called "unreliable boyfriend," frequently promising rate hikes and then ultimately failing to deliver.<a href="http://uk.businessinsider.com/bank-of-england-may-2018-interest-rate-decision-2018-5">The accusation was levelled at Carney after May's policy meeting</a>, which many had expected would see a rate hike."Not for the first time, Mark Carney's policy of guiding the markets as to what to expect has backfired," Ben Brettell, a senior economist at FTSE 100-listed investment manager Hargreaves Lansdown said at the time.The u-turn in May and the lack of attempt from the MPC to try and dampen financial market expectations of a hike point in one direction, John Wraith, strategist at UBS wrote in a note on Monday."Guidance and communication from the MPC over recent months, and in particular the lack of any attempt to rein in the ever higher market-implied probability of a 25bp hike, suggests a majority of members are set to vote for a hike on Thursday," he said.But Wraith is one of a handful of analysts who sees the bank's likely hike as premature. He called it an "unnecessary risk" in a note sent to clients this week."We continue to view even the tentative tightening embarked on since late 2017 as an unnecessary risk, and see several reasons why a hike is not justified at this point in time," he added.<h2>Uninspiring data</h2>The British economy could be summed up as average. Growth is hovering at around 0.3% per quarter, <a href="http://uk.businessinsider.com/uk-inflation-level-for-june-2018-2018-7">inflation is just above 2%,</a> and <a href="http://uk.businessinsider.com/ons-uk-employment-data-from-july-2018-2018-7">real wage growth is just about climbing</a>. <a href="http://uk.businessinsider.com/ons-uk-employment-data-from-july-2018-2018-7">The number of people in jobs is at a record high.</a>On the downside, <a href="http://uk.businessinsider.com/no-deal-brexit-impact-uk-economy-2018-7">consumer and business confidence are falling</a>, largely due to continued uncertainty about what Brexit is actually going to look like."Despite ongoing healthy job creation and the very low level of unemployment, confidence among consumers has been softening of late, particularly in their forward-looking assessment of the economic outlook," Wraith said. "Corporate confidence too looks weak, and is being reflected in ongoing very soft business investment.""The latest edition of the Ipsos Mori Issues Index provides striking evidence that concerns about Brexit are the reason that consumer confidence is ailing," he continued."The proportion of respondents viewing the EU and Brexit as one of the most important concerns facing the UK shot up from 46% to 58% in July, the highest reading in the history of the index which dates back to 1974."Wraith doesn't believe that such data will stop the Bank of England from hiking rates but believes it should, particularly when considering that this behaviour is going against the bank's own forecasts."It has long been the MPC's explicit assumption that 'households and companies (will) base their decisions on the expectation of a smooth adjustment to new trading arrangements'," he said."Subsiding consumer and business confidence, especially in forward looking gauges, together with the responses to the Ipsos Mori opinion poll, suggest strongly in our view that private sector economic agents are increasingly and demonstrably not behaving in this way," Wraith concluded.<h2>What to look out for</h2><div class="KonaFilter image-container display-table"><div><div class="image on-image">Jim EdwardsThe outside of the Bank of England</div></div></div>Given that a rate hike is almost a foregone conclusion, other parts of the MPC's decisions, and the minutes of the meeting are likely to provide more intrigue.Kathleen Brooks said that one of the main things to look for will be the "mechanics of the rate decision," particularly with regard to how the vote goes in terms of who votes for what."The market is currently expecting an 8-1 split in favour of a hike, with Sir Jon Cunliffe the only member expected to dissent and vote against a hike," she wrote."However, if we get more MPC members voting against a hike then sterling could come under pressure, as it would suggest a future dovish stance by the BOE."Mark Carney's press conference will also be of interest, particularly if the governor provides an update on the equilibrium rate of UK interest rates.Here's Brooks one last time: "Earlier this year the BOE Governor Mark Carney said that the Bank would give its view on the latest equilibrium, or neutral, interest rate for the UK economy."This is also known as R*. The market is expecting this rate to come in around 1.5%. If an R* of 1.5% is confirmed by the BOE, then it would suggest another three rate hikes are likely in the next 3 years."Stay tuned to Business Insider for updates after the decision is announced at 12.00 p.m. BST (7.00 a.m. ET). <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/cigna-ceo-explains-the-problem-with-healthcare-in-america-2018-7">Cigna's CEO says that the problem with healthcare in America has nothing to do with employers</a></h3> <div> </div> </div>

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