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The Reserve Bank of India (RBI) kept its policy rate on hold on Wednesday and unexpectedly signalled an end to its longest easing cycle since the global financial crisis, saying inflation poses a bigger threat to the economy than a crackdown on "black money." After keeping the repo rate on hold at 6.25 per cent for a second meeting in a row, the RBI also changed its stance to "neutral" from "accommodative", stunning bond investors who had bet the RBI would ease by 25 basis points, either this week or at its next policy review in April, reports Reuters. The new stance could effectively mark an end to a period in which the RBI cut interest rates by a total of 175 bps from January 2015 to October 2016, starting with previous Governor Raghuram Rajan and continuing under Urjit Patel. The vote by the monetary policy committee to hold rates steady was 6-0, marking its third straight unanimous decision since being established in September. It is a decision that differs sharply with some private forecasters, who believe the RBI is under-estimating the impact of the cash crackdown. "It's quite disappointing that RBI has come out with a strongly hawkish policy at a time when growth slowdown has become very acute in the aftermath of demonetisation," said Rupa Rege Nitsure, group chief economist at L&T Financial. A Reuters poll last week showed 28 of 46 participants had expected the RBI to cut the rate by 25 bps to its lowest since November 2010. Analysts had warned it could be a close call but the change in stance jolted investors. Benchmark 10-year bond yields rose by as much as 34 bps, the biggest single-day rise since September 2013. NO ROOM TO CUT? Many analysts were expecting a rate cut from the RBI by April given inflation fell to a two-year low of 3.41 per cent in December, below the central bank's medium-term target of 4 per cent. But the RBI dashed those hopes, saying on Wednesday the fall was largely on the back of a decline in volatile food prices, and warned core inflation had been "unyielding" at 4.9 per cent since September. The RBI also said it wanted more time to gauge the impact of global risks on the rupee, which fell more than 2 per cent against the dollar last year as expectations of higher US interest rates triggered a flood of capital outflows from emerging markets. In holding the line, the RBI's monetary policy committee is seeking to establish its inflation-fighting credentials. Under changes pushed by Rajan, a former chief economist at the International Monetary Fund, and his then deputy Governor Patel, India last year formally adopted an inflation target and set up a six-member panel to set interest rates in a bid to tame the country's historically volatile prices. "The decision of the MPC is consistent with a neutral stance of monetary policy," the RBI said in its statement, adding it would allow it to achieve an inflation target of 4 per cent in the medium term "while supporting growth." But analysts warn the RBI risks under-estimating the impact of Prime Minister Narendra Modi's crackdown on unaccounted cash, or "black money." Announced in November, it sparked a severe shortage of money that sent shockwaves through the cash-reliant economy, though the situation has improved in recent weeks. The RBI lowered its gross-value added, a measure of growth it prefers, to 6.9 per cent from 7.1 per cent for the year ending in March, but then forecast the economy would "recover sharply" - a view that is not shared by some economists. "It's a big surprise to us," said Anjali Verma, an economist for Phillipcapital India. "The commentary is in line with the decision they have taken but it is probably not in sync with the reality."  ....

Published at: 2017-02-09 00:00:05

Members of Border Guard Bangladesh (BGB) in separate drives seized eight lakh pieces of Yaba tablets, worth about Tk 240 million (24 crore), from Shahparir Dwip and Jalia Dwip on the Bay of Bengal in Teknaf upazila of Cox's Bazar on Thursday, reports UNB. A team of the border force, following a tip off, challenged a boat from Myanmar carrying smugglers while crossing the Naf River in Shahparir Dwip area at about 1:15am, said Lt Col Abu Jar Al Zahid, commanding officer of BGB-2. Sensing presence of the BGB team, the smugglers fled the scene, leaving behind the Yaba tablets, kept in seven packets worth Tk 210 million (21crore). Meanwhile, the same team conducted another drive in Jalia Dwip area and recovered one lakh Yaba pills around 9.30am, said Abu Jar Al Zahid. However, there was no arrest.....

Published at: 2017-02-09 00:00:05

SYLHET, Feb 7: Two medical students sank into a quicksand at Lalakhal Mistrighat in Jaintapur upazila on Tuesday afternoon.  The deceased were identified as Hasan M Sayeed, 25, son of Humayun Reza of Dhaka, and Ishak Ibrahim, 25, son of M Ibrahim Hossain of Chapainawabganj district. Both were 5th year students of Jahurul Islam Medical College in Kishoreganj.     — UNB....

Published at: 2017-02-08 00:00:04

The government spent Tk 399.73 billion from the Tk 1.13-trillion Annual Development Programme (ADP) in July-January period-marking 4.0 percentage points higher spending over the corresponding period of last fiscal. After Tuesday's Executive Committee of the National Economic Council (ECNEC) meeting, Planning Minister AHM Mustafa Kamal told journalists that the government agencies spent Tk 399.73 billion or 32 per cent of the development budget in the first seven months of the current financial year (FY), 2016-17. In the same period of FY2016, they had spent Tk 287.50 billion or 28 per cent of the total outlay of the last ADP. He quoted Implementation Monitoring and Evaluation Division (IMED) data about the comparative ADP execution, which was slower in initial periods of the financial year.        Mr Kamal claimed that the ADP spending rate during the first seven-month period of the current FY2017 was "the highest in Bangladesh history". The minister would not unveil any details about the ADP execution and spending of its allocations in various sectors. Meanwhile, the ECNEC approved seven fresh development projects and revised one at its meeting, held at the Planning Commission in the city with ECNEC Chairperson and Prime Minister Sheikh Hasina in the chair. Among those is the 'Increasing strength of existing runway and taxiway of Sylhet Osmani International Airport' project that involves Tk 4.52 billion for the modernisation of the airport. Mr Kamal said the seven new projects and one revised cost Tk 20.72 billion in total. "The entire project cost will come from the national exchequer." The other approved projects are: "Upgradation and widening of important regional highway (Gopalganj Zone)" at Tk 3.95 billion, "Construction of two link Roads (Nirala Avenue and Khulna University Avenue)" at Tk 1.28 billion, "Development of Chittagong Engineering and Technology University" at Tk 3.20 billion, "Protecting Gaibandha Sadar and various structures of Fulchhari upazila, including mass graves from the river erosion on the right embankment of River Jamuna" at Tk 2.76 billion, "Development of undeveloped areas of Barisal BSCIC Industrial Estate and repairing and reconstruction of infrastructures in developed areas" at Tk 522. million and "Establishment of Sheikh Kamal IT Training and Incubation Center" at Tk 2.65 billion. The ECNEC revised the "Construction of Sheikh Kamal, Sheikh Jamal and Sheikh Russell Bridges on Patuakhali-Kuakata road (3rd revised)" project that costs Tk 1.83 billion.     kabirhumayan10@gmail.com....

Published at: 2017-02-08 00:00:04

Country's banking sector is facing complaints in rising numbers, totalling 4,530 in the last fiscal alone, against various alleged wrongs.     By official count the complaints increased by over 15 per cent in the fiscal year (FY) 2015-16 over the previous fiscal. According to a disclosure made by the central bank Tuesday, the Bangladesh Bank (BB) received the 4530 complaints from the commercial banks and non-banking financial institutions (NBFIs) in the FY 16 against 3930 plaints in the FY'15. The findings are carried in the annual report of the Financial Integrity and Customer Services Department (FICSD) of the central bank for the FY16. The report says most of the complaints relate to general banking, loans and advances, cards, remittances, mobile banking, trade bills, bank guaranty, and miscellaneous matters. "The rate of resolution was 100 per cent in the FY 16 which was similar to the previous fiscal year," it noted. The highest number of complaints was received against Sonali Bank Limited, a state-owned commercial bank (SoCB). Among other public banks, Agarni Bank Limited, Janata Bank Limited, Bangladesh Krishi Bank Limited and Rupali Bank Limited were in the third, fifth, seventh and ninth positions respectively. "Among the private commercial banks (PCBs), BRAC Bank Limited was in the first position. This bank is in the second position in terms of complaints received against all banks," the BB said in its report.  The BB, which is a regulatory body for the banks and NBFIs, receives complaints through its 10 branch offices across the country. While unveiling the report at the central bank headquarters in Dhaka, BB Governor Fazle Kabir put emphasis on securing depositors and customers' interests in a cooperative manner. "The banks are service-oriented institutions. So they (banks) will have to ensure their services to the customers with cooperative attitude," the central bank chief said. He also advised the banks to conduct training programme separately in this connection for improving their quality of services. BB Deputy Governor Abu Hena Mohd. Razee Hassan asked the bankers to follow their staff regulations properly. "The banks will have to go to the public with better services." President of the Consumers Association of Bangladesh (CAB) Ghulam Rahman urged the central bank to monitor the banks closely to protect the depositors' interests. About a falling trend in interest rates on deposit, the CAB president sought BB intervention in this connection, saying that the depositors are not benefitting from the existing trend in interest on deposit rather they are being affected.   Chairman of the Association of Bankers, Bangladesh (ABB) Anis A Khan said there is no scope of corruption in the country's banking sector. Mr. Khan, also Managing Director and Chief Executive Officer of the Mutual Trust Bank Limited, advised the bankers to ensure services to their clients. Among others who also spoke on the occasion were Executive Director of the BB Mohammad Masum Kamal Bhuiyan, General Manager of the FICSD AKM Amjad Hussain, Deputy General Manager of the FICSD Mohammad Mamunul Hoque and customers of different banks. Earlier on March 28, 2011, the central bank introduced a helpdesk to safeguard the interests of customers. Later in September 2011, the helpdesk was renamed Customers' Interests Protection Centre. To tackle the rising number of complaints, the BB in July 2012 transformed the centre into an independent department styled FICSD. siddique.islam@gmail.com....

Published at: 2017-02-08 00:00:04