News
India lifts rate to pre-pandemic level to fight inflation
Bloomberg – India’s central bank delivered its third straight interest-rate increase since May in an effort to return inflation to target and fend off further attacks on the currency. Bond yields and the rupee rose.
The repurchase rate was raised by 50 basis points to 5.40% Friday, a level last seen before the Covid-19 pandemic, as forecast by 16 of 36 economists surveyed by Bloomberg. The Reserve Bank of India’s six-member rate-setting panel voted unanimously on the decision, while sticking with its resolve to withdraw accommodation.
Sovereign bonds declined after the hike, which most economists had expected to be less than a half-point. The 10-year yield rose 10 basis point to 7.26%. The rupee was up 0.5% at 79.0713 to a dollar.
“Inflationary pressures are broad based and core inflation remains elevated,” Governor Shaktikanta Das said in an address from Mumbai, adding that inflation is expected to remain above the tolerance level. The RBI targets inflation at 2%-6%.
Friday’s move mirrors the Federal Reserve-led global tightening of interest rates to rein in consumer-price gains, caused in part by supply snarls and energy price shocks following the war in Ukraine. Although global commodity prices are showing signs of softening, any immediate pass-through in India appears unlikely even as a weaker rupee and uneven monsoon rains cloud the outlook for prices.
“The MPC stressed that sustained high inflation could destabilize inflation expectations and harm growth in medium term,” Das said, while retaining the forecasts for economic as well as price growth for the current fiscal year.
RBI’s cautious view on inflation is justified on uncertainty on monsoon performance and sustainability of commodity price correction, said Anubhuti Sahay, Mumbai-based South Asia chief economist at Standard Chartered Plc. “We see terminal repo rate at 6% by end of 2022.”
Das said the RBI will remain watchful and maintain the stability of rupee. India’s currency fell nearly 7% year-to-date on foreign fund outflows and record trade deficit.
Police urge motorists who intend to use the Ella – Wellawaya Road to use alternative roads as there is a severe vehicle congestion due to inclement weather condition.
The oil anointing ceremony for the Sinhala and Tamil New Year was held on April 16 at the historic Rajamaha Viharaya in Kolonnawa, with the participation of Prime Minister Dr. Harini Amarasuriya.
Following the chanting of pirith, the oil anointing ritual was carried out at the auspicious time of 9:04 a.m., by the Chief Incumbent of the temple, Venerable Kolonnawa Dhammika Thero.
Speaking after the ceremony the Prime Minister said that:
“The Sinhala and Tamil New Year is one of the most important festivities in our country. It is a celebration with our families, reflecting our traditions and customs while strengthening the ties.
This festival leads the path for renewing unity, love, and bonds stronger. These values enrich a country. Development of a country is not limited by one-dimensional; a true development includes spirituality, relationships, and connections. The reason why we uphold these customs in such ceremonies is to remind ourselves of the significance and to pass on their value to future generations.
Therefore, today marks a significant day. Throughout this week, we came together and engaged in various activities. Followed by, the next event will mark the leaving for employment at the auspicious time and we should start working collectively to rebuild the country.
I wish everyone a New Year that is prosperous, peaceful, joyful, full of strengthened relationships, and most importantly, safe for all.”
The ceremony was graced by the presence of the Maha Sangha, and attended by the Deputy Minister of Youth Affairs Eranga Gunasekara, Divisional Secretary to Kolonnawa Priyanath Perera, Municipal Secretary Nelum Kumari Gamage, and the residents of the area.
[Prime Minister’s Media Division]
Latest News
Heat Index at ‘Caution Level’ at some places in Northern, North-central, North-western, Western, Southern and Eastern provinces and in Rathnapura and Monaragala districts today [16]
Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology for 16 April 2025
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Northern, North-central, North-western, Western, Southern and Eastern provinces and in Rathnapura and Monaragala districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the table below and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
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