RBI Keeps Interest Rate Unchanged Amid Persistent Inflation

The Reserve Bank of India (RBI) has maintained the benchmark interest rate for the ninth consecutive policy meeting. This decision, announced on Thursday, means that interest rates on home, auto, and other loans are likely to remain unchanged. The RBI cited persistent high food inflation as a key reason for this stance.

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Equity benchmark indices Sensex and Nifty closed nearly 1 per cent lower on Thursday. This decline followed the RBI's decision to keep the policy rate unchanged, highlighting the ongoing challenge of stubborn food inflation.

LIC Reports Profit Increase

Life Insurance Corporation of India (LIC) reported a 10 per cent increase in net profit for the June 2024 quarter. The profit rose to Rs 10,461 crore, reflecting a positive performance for the period.

India's forex reserves reached a record high of USD 675 billion on August 2. Reserve Bank Governor Shaktikanta Das announced this milestone on Thursday, indicating a strong financial position for the country.

Rupee Slightly Declines

The rupee experienced a minor decline, settling at 83.97 against the US dollar on Thursday. This slight drop of 2 paisa occurred after the RBI's decision to keep the interest rate unchanged.

The National Company Law Tribunal (NCLT) has directed IndusInd International Holdings Ltd (IIHL), led by the Hinduja Group, to deposit Rs 2,750 crore into a special escrow account within 48 hours. This directive is part of Reliance Capital's resolution plan.

US Court Decision on Byjus

A US court has rejected an application by GLAS Trust Company for a temporary restraining order aimed at blocking a settlement with the Board of Control for Cricket in India (BCCI). Edtech firm Byjus announced this development on Thursday.

The Telecom Regulatory Authority of India (TRAI) has announced measures to combat spam calls. On Thursday, TRAI stated that telecom operators will disconnect resources used by entities misusing bulk connections for spam calls. Such entities will also face blacklisting by all operators for up to two years.

Gold and Silver Prices Update

Gold prices remained stable at Rs 71,350 per 10 grams in the local market on Thursday. However, silver prices saw a significant drop of Rs 1,100 per kilogram, according to the All India Sarafa Association.

Reserve Bank Governor Shaktikanta Das addressed concerns about top-up loans being used for speculative purposes. He clarified that this trend is limited to certain banks and does not represent a systemic issue across the banking sector.

The RBI's decision to maintain interest rates reflects its cautious approach amid ongoing inflationary pressures. This stance aims to balance economic stability while addressing persistent high food prices.