RBI to maintain accommodative monetary policy stance
The Reserve Bank of India is likely to maintain its accommodative monetary policy stance but a faster-than-expected recovery in growth is limiting the scope for further rate cuts, the minutes of the monetary policy committee (MPC) meeting said.The MPC left key interest rates unchanged this month amid persistently high inflation but said it would ensure ample liquidity to stressed sectors to keep India’s nascent economic recovery on track. “With growth gaining cyclical momentum, the window available to the MPC to look through inflation pressures is narrower than before,” deputy governor and MPC member Michael Patra wrote in the minutes released on Friday.
The Indian economy contracted by a smaller-than-expected 7.5 per cent in the September quarter while retail inflation eased to 6.93 per cent in November but stayed well above the RBI’s mandated 2 per cent-6 per cent target range. “High inflation remains a risk but easing these pressures requires easing supply conditions,” wrote ShashankaBhide, member of the MPC. Most members, however, believe inflation remains transient and is largely due to supply-side factors and should start easing post December.
Sponsor director elected chairman of Citizens Bank
TowfikaAftab, one of the sponsor directors of Citizens Bank, has recently been elected chairman of the bank. A lawyer by profession, she served as a government appointed legal prosecutor in the Bangabandhu Sheikh Mujibur Rahman and four national leaders’ murder cases.She obtained a master’s degree in political science and bachelor of law degree from the University of Dhaka.Towfika is also the founder chairman of Ethnica School
China’s economic recovery ‘not yet solid’ after pandemic
China said its economy had yet to fully bounce back from the coronavirus pandemic and pledged financial support for recovery efforts at the end of a key annual policy meeting on Friday.The country suffered its first contraction in decades this year in the wake of a public health crisis that prompted drastic lockdowns in Wuhan. Its economy has since improved after authorities managed to largely contain the infection, and China is likely to be the only major world power to record positive growth this year.But officials at this week’s Central Economic Work Conference, presided over by President Xi Jinping, said the global recovery would be “unstable and uneven” and signaled a fiscal policy focused on maintaining economic stability.
“We must be clearly aware that there are many uncertainties in the evolution of the pandemic and external environment, and the foundation for our country’s economic recovery is not yet solid,” said a statement from the three-day summit published by state broadcaster CCTV.Beijing will boost financial support to technological innovation, small business and green projects into the new year in efforts to keep the economy on an even keel, the meeting said.
ICB approves 10pc dividend
The shareholders of ICB on Saturday approved 5.0 per cent stock and 5.0 per cent cash dividend for the year 2019-2020.The approval came at the 44th Annual General Meeting (AGM) of Investment Corporation of Bangladesh (ICB) held on the day through Digital/Virtual Platform. During FY 2019-2020, ICB earned solo and consolidated (with subsidiaries) net profit of Tk 40.92 crore and Tk. 56.49 crore respectively.
Earlier the Corporation had declared dividend for its Unit Fund @ of Tk 40.00 per Unit Certificate which is highest than any other mutual fund. During the period under review, the Corporation made cumulative investment from beginning to last fiscal year of Tk. 14,557.18 crore in the capital market.
The meeting was presided over by Prof. Dr. Md. Kismatul Ahsan, Chairman, Board of Directors of the Corporation. The meeting was attended by the Managing Director of ICB Mr. Md. Abul Hossain and other Directors of ICB. A large number of shareholders virtually attended the meeting.