NEW DELHI, June 6: India's central bank, RBI, has lowered interest rates by a deeper-than-expected half a percent - the third cut in a row amid falling inflation and lower growth in Asia's third largest economy.

It also increased the amount of liquidity - or supply of money - available in the system.

The repo rate - the level at which the central bank lends money to commercial banks, influencing borrowing costs for home and car loans - now stands at 5.5%, the lowest in three years.

Explaining the rationale for the cut, RBI governor Sanjay Malhotra said growth is "lower than our aspirations" and the bank felt it was "imperative to stimulate domestic consumption and investment" amid rising global uncertainties.

The rate cut comes on the back of two previous reductions in April and February.

Data released last week showed that India's economy grew by 6.5% in the previous financial year ending March.

The country remains the world's fastest expanding major economy, although growth has sharply dropped from the 9.2% high recorded in financial year 2023-24.

Meanwhile, retail prices in India have slowed faster than expected to 3.16% in April - the lowest in six years - and below the RBI's 4% target, driven down by falling food prices.

RBI has now forecast lower inflation than earlier projected for the year ahead.

But the central bank has changed its monetary policy stance from "accommodative" to "neutral", indicating that further rate cuts will depend on how India's growth-inflation dynamic evolves.

Pakistan Not Allowed To Misuse $2.3 Billion Bailout Package: IMF

WASHINGTON, May 23: The International Monetary Fund explained Friday that Pakistan cannot sanction non-programme use of financial assistance provided to its central bank under the Extended Fund Facility, and that there are safeguards to check misuse, including unauthorised government disbursement or lending.

IMF financing, Comms chief Julie Kozack told reporters Thursday, is expressly for resolving balance of payments problems, and deviation from established programme conditions - which include structural conditions like improving fiscal management - will impact future reviews.

She also pointed to IMF protocol, under which the Executive Board 'conducts periodic reviews of lending programmes... to check if policy changes are needed to bring it back on track'.

"... our Board found Pakistan had indeed met all of the targets. It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the program."

Clarifications on the monitoring of EFF payments come amid red flags raised by India over international agencies choosing to transfer billions in financial assistance to Pakistan at this time, i.e., after the Pahalgam terror attack and subsequent military escalation by the Pak Army.

Cabinet Clears ₹3,706 Crore HCL-Foxconn Chip Plant In UP's Jewar

NEW DELHI, May 14: The Union Cabinet on Wednesday approved a Rs 3,706 crore semiconductor plant at Jewar in Uttar Pradesh, to be set up by the HCL-Foxconn joint venture to manufacture display driver chips for mobile phones, laptops, and automobiles.

The plant will have the capacity to handle 20,000 wafers per month, and 3.6 crore chips will be produced per month, Information and Broadcasting Minister Ashwini Vaishnaw said while briefing the media on the Cabinet decision. The minister said that the plant will make driver chips for displays used in mobile phones, laptops, automobiles, and other devices.

"The Cabinet has approved a sixth semiconductor plant that will be set up in Jewar, Uttar Pradesh. It is a joint venture between HCL and Foxconn to manufacture display driver chips. These chips control the quality and format of the content displayed on screen. It is a very advanced technology that is being set up," Vaishnaw said.

Foxconn is the biggest manufacturer of electronic products, including Apple's iPhone.

"What we understand is that once this unit is there, then the display panel plant will also come to India. This will meet 40 per cent of India's capacity. It is a large plant. It will also meet the requirements of Foxconn for the rest of the world," Vaishnaw said These chips control the function and format of content on the screen of devices.

The HCL-Foxconn JV will become operational in 2027, the minister said.

The plant is expected to create employment for 2,000 people, he noted.

The electronics manufacturing industry in India, at present, employs around 25 lakh people, he added.

"Semiconductors are basic components. It will have a multiplier effect on the entire electronics manufacturing in the country," Vaishnaw said.