Rate cut ‘showdown’

In a riveting showdown within the RBI’s Monetary Policy Committee (MPC), two external members are vociferously championing a rate cut, clashing head-on with the internal members who are wary of food inflation risks.

The June meeting minutes reveal Ashima Goyal and Jayanth R Varma pushing for a 25 basis point cut and a shift to a neutral stance, arguing that growth is below potential and a tight policy could stifle future growth.

Goyal warned, “Reducing unemployment is crucial for stability,” while Varma stressed that prolonged restrictive policy could harm growth in 2025-26. However, Governor Shaktikanta Das and his allies remain firm, citing persistently high food inflation. Das cautioned against “hasty actions” and emphasised the importance of aligning inflation to the 4 per cent target.

With the next MPC meeting in August, the tension mounts. If one more member supports the cut, Das will cast the deciding vote, a first since MPC’s inception in 2016. The stage is set for a dramatic monetary policy battle.

The helmet saga

The recent train accident in Bengal saw Railway Minister Ashwini Vaishnaw rush to the spot. And to reach the site, the minister took a bike ride. Pictures and videos of the minister riding pillion through villages and the tough terrain went viral. And Vaishnaw was once again the talk of town for his hands-on effort.

However, there was one thing that the minister forgot, wearing a helmet while taking the bike ride. In Bengal, the double helmet rule is mandatory, which means that the pillion also wears a helmet.

In Kolkata, if a rider or pillion is found without a helmet, then he/she is required to pay a fine of ₹1,000 to the traffic police.

Yoga Day protests

Although it was International Yoga Day, and celebrating the much-hyped programme of the Centre was a given mandate, one minister — apparently already on the back-foot following ‘negative’ press due to some recent happenings in his ministry — decided to back out of a pre-scheduled programme, citing “personal reasons”. The Yoga Day event in question was to be held at a multi-purpose hall of Delhi University.

However, students continued their protests at the venue raising slogans against the education minister and alleged irregularities in the various competitive exams, apparently forcing the change in plans.

Will Kejriwal walk free?

In the latest twist to the high-profile Delhi Excise policy case, the High Court overturned Chief Minister Arvind Kejriwal’s bail order after a successful challenge by the Enforcement Directorate (ED). Granted bail by the trial court, Kejriwal’s brief taste of freedom was short-lived. The ED, not one to back down, appealed the decision the very next day, and the High Court swiftly put a pause on the bail order.

All eyes are now set on subsequent developments in this case.