10th June 2019 Daily Current Affairs Analysis:
- The benchmark interest rate of the Reserve Bank of India (RBI) fell below 6% for the first time since 2010 as the central bank’s monetary policy committee (MPC) cut repo rates by 25 basis points (bps) to 5.75% in order to address growth concerns.
- The stance of the policy has also been changed from neutral to accommodative, which means a hike in interest rates is ruled out.
- The decision to cut interest rate was unanimous among the MPC members.
- The RBI has revised GDP growth projection for the current financial year from 7.2% to 7%. “The headline inflation trajectory remains below the target even after taking into account the expected transmission of the past two policy rate cuts,” RBI Governor Shaktikanta Das said at the media interaction. “Hence, there is scope to boost aggregate demand and, in particular, private investment activity, while remaining consistent with the mandate of flexible inflation targeting,” he said.
- The path of consumer price index based inflation has been revised downward to 3.4%-3.7% in the second half of the current fiscal.
- RBI targets 4% CPI inflation over the medium term.
- The governor said banks transmitted only 21 basis points of the cumulative 50 basis points rate cut (in February and April).
- “Our expectation is that as we go forward, there will be higher and faster transmission,” he said, adding the impact of the same will be seen in consumer and two-wheeler loans.
- While yield on the 10-year benchmark government bond dropped 9 bps to close at 6.93%, equity indices settled in the negative territory
AU suspends Sudan, seeks civilian government:
- The African Union (AU) suspended Sudan, demanding a “civilian-led transitional authority” to resolve an entrenched and bloody crisis.
- Calls for the AU to take action had mounted after crackdown on protesters who had camped outside Army headquarters in Khartoum. Sudanese authorities admitted that dozens were killed.
- The Rapid Support Forces, the paramilitary troops notorious for atrocities committed in the impoverished western province of Darfur in the early 2000s, reportedly threw the dead into the Nile.
- An Opposition-linked doctors’ group said that 40 bodies had been pulled from the Nile, taking the toll to at least 108.
- The military leadership that took control after the ouster of Omar al-Bashir in April2019 had failed to hand over power to civilians.
India to hold first ever simulated space warfare exercise
- India to hold it’s first-ever simulated space warfare exercise in the last week of July, 2019. It has been named – IndSpaceEx.
- This exercise will basically be a ‘table-top war-game’, with all stakeholders from the military and scientific community taking part in it.
- All military stakeholders, including those from the scientific community, will participate in it.
- Primary objective of the exercise is to understand the possible challenges in space warfare and to counter China's growing influence in this domain, which poses a major threat to India's national security interest.
- India took the first step towards developing a credible counter-space capability under ‘Mission Shakti’ when it launched a 19-tonne interceptor missile to destroy the 740-kg Microsat-R satellite, at an altitude of 283 km in a ‘hit-to-kill mode’ on 27th March, 2019.
- Since then, a new Defence Space Agency has begun to take shape, by amalgamating the Defence Imagery Processing and Analysis Centre (Delhi) and the Defence Satellite Control Centre (Bhopal), with a two-star IAF general to be soon appointed to head it. The agency is expected to eventually grow into a full-fledged Space Command in the years ahead.
Sumatran Volcano erupts:
- Mount Sinabung volcano erupted in Sumatra Island of western Indonesia. Eruption resulted in column of thick ash being spread seven km high to southeast and south of crater.
- Key facts:
- No damages or casualty were reported due to eruption.
- Mt. Sinabung Volcano is at 2nd highest alert level due to which no one lives inside a previously announced No-Go Zone around five km from the crater.
- FIndonesia is home to over 130 active volcanoes due to its position on ‘Pacific Ring of Fire’, a belt of tectonic plate boundaries circling Pacific Ocean where frequent seismic activity occurs.
Ring of Fire:
- The Ring of Fire is a Pacific region home to over 450 volcanoes, including three of the world’s four most active volcanoes – Mount St. Helens in the USA, Mount Fuji in Japan and Mount Pinatubo in the Philippines. It is also sometimes called the circum-Pacific belt.
- Around 90% of the world’s earthquakes occur in the Ring of Fire, and 80% of the world’s largest earthquake
- It stretches along the Pacific Ocean coastlines, where the Pacific Plate grinds against other, smaller tectonic plates that form the Earth’s crust – such as the Philippine Sea plate and the Cocos and Nazca Plates that line the edge of the Pacific Ocean.
- The 40,0000 kilometre horse-shoe-shaped ring loops from New Zealand to Chile, passing through the coasts of Asia and the Americas on the way.