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India lifts rate to pre-pandemic level to fight inflation

Published

4 years ago

2022/08/6

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.

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INS NIREEKSHAK makes port call in Colombo

Published

4 hours ago

2026/04/21

Priyan

The Indian Navy Ship (INS) NIREEKSHAK arrived in Sri Lanka for Operational Turnaround (OTR) and a training visit on 21 Apr 26.

The Sri Lanka Navy welcomed the visiting ship at the port of Colombo in accordance with time-honoured naval traditions.

Commanded by, Commander Sailesh Kumar Tyagi, this Diving Support Vessel is set to conduct a training programme with the diving professionals of the Sri Lanka Navy.

The crew is also scheduled to participate in several activities organized by the Sri Lanka Navy and visit some tourist attractions within the country.

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Advisory for Severe Lightning issued to the Western, Sabaragamuwa, Central, North-western, North-central, Southern, Uva provinces, and Mannar, Vavuniya, Ampara, Batticaloa districts

Published

6 hours ago

2026/04/21

Priyan

Advisory for Severe Lightning
Issued by the Natural Hazards Early Warning Centre
Issued at 12.00 noon 21 April 2026 valid for the period until 11.30 p.m. 21 April 2026

Thundershowers accompanied with severe lightning are likely to occur in the Western, Sabaragamuwa, Central, North-western, Northcentral, Southern, Uva provinces, and in Mannar, Vavuniya, Ampara, Batticaloa districts after 1.00 p.m.

There may be temporary localized strong winds during thundershowers. General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:
 Seek shelter, preferably indoors and never under trees.
 Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
 Avoid using wired telephones and connected electric appliances during thunderstorms.
 Avoid using open vehicles, such as bicycles, tractors and boats etc.
 Beware of fallen trees and power lines.
 For emergency assistance contact the local disaster management authorities

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Six Foreign Envoys Present Credentials to President Dissanayake

Published

8 hours ago

2026/04/21

Priyan

Two High Commissioners, three Ambassadors and an Apostolic Nuncio-designate of the Holy See presented their credentials to President Anura Kumara Dissanayake at the Presidential Secretariat this morning (20).

The ceremony, held at 10.00 a.m., followed the formal order of precedence, with the envoys representing Papua New Guinea, Somalia, Luxembourg, the Holy See, Pakistan and Kuwait.

Accordingly, diplomats who presented their credentials were:

01. Vincent Sumale, High Commissioner-designate of Papua New Guinea (Based in New Delhi)

02. Abdullahi Mohammed Odowa, Ambassador-designate of Somalia (Based in New Delhi)

03. Christian Biever, Ambassador-designate of Luxembourg (Based in New Delhi)

04. Monsignor Andrzej Józwowicz, Apostolic Nuncio-designate of the Holy See

05. Major General (Retd) Nayyar Naseer, High Commissioner-designate of Pakistan

06. Saleh Mubarak Al-Sarawi, Ambassador-designate of Kuwait

Following the presentation of credentials, the President engaged in a cordial discussion with them. The Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, and the Secretary to the President, Dr Nandika Sanath Kumanayake, were also in attendance.