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India’s central bank holds rates as inflation risks remain contained

An overwhelming majority of 68 out of 72 economists polled by Reuters had forecast that the RBI will stand pat on its benchmark interest rates

Reuters
Reuters

05 August, 2026

India’s central bank holds rates as inflation risks remain contained

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The Reserve Bank of India kept its policy repo rate unchanged at 5.25 per cent on Wednesday, as it awaits data to judge if higher oil prices are stoking inflationary pressures across Asia’s third largest economy.

The decision to hold rates sets India apart from a growing band of regional peers including Indonesia, Philippines and others that have responded to the inflationary fallout from higher energy prices and war-driven currency volatility by tightening policy. Instead, the RBI announced a series of steps at the previous meeting to boost capital inflows and support the rupee.

Read more-India central bank holds rates as oil shock raises risks

The central bank’s six-member rate panel, which includes three external members, voted unanimously to keep rates on hold. The rate-setting panel also retained the policy stance at “neutral”.

An overwhelming majority of 68 out of 72 economists polled by Reuters had forecast that the RBI will stand pat on its benchmark interest rates.

Headline inflation has moved above target mainly because of higher fuel prices, while broader price pressures remain in check, RBI governor Sanjay Malhotra said while announcing the policy.

Signalling no rush to act until there is greater clarity on inflation, Malhotra reaffirmed the RBI’s “resolute” commitment to its inflation target.

India’s benchmark 10-year bond yield was flat at 6.7765 per cent, while the rupee weakened marginally to 95.03. The benchmark Nifty 50 index was flat, while BSE Sensex was 0.5 per cent higher.

Inflation in check; growth resilient

The central bank cut its forecast for average inflation in the current financial year to 5 per cent from the 5.1 per cent it projected in June. The forecast for core inflation, which excludes food and fuel, was cut more steeply to 4.3 per cent from 4.7 per cent earlier.

Retail inflation in India rose above the central bank’s medium term target of 4 per cent for the time in 17 months in June but is projected to stay within its tolerance band of 2 per cent-6 per cent in the current fiscal year, giving policymakers breathing room on rates.

The central bank also raised its GDP growth estimate marginally to 6.7 per cent for the year from 6.6 per cent in June.

High frequency economic indicators have projected a mixed picture with the purchasing managers index slipping to a five-year low but demand for credit growing at a much stronger pace of near 18 per cent.

Domestic demand remains resilient but a weak monsoon, trade and geopolitical uncertainties could emerge as risks to growth, Malhotra said.

Air India turbulence injures passengers on Phuket-Delhi flight

Reports said at least 12 people, including passengers and cabin crew, sustained injuries

Rajiv Pillai
Rajiv Pillai

04 August, 2026

Air India turbulence injures passengers on Phuket-Delhi flight
Image: Getty Images/Image for illustrative purpose

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An Air India flight from Phuket to Delhi encountered severe turbulence during its descent on Tuesday, leaving multiple passengers and cabin crew injured and highlighting the continuing operational challenges airlines face from unexpected weather-related events.

According to Indian media reports, flight AI2379, operated by an Airbus A320, experienced a sudden bout of turbulence shortly before landing in the Indian capital. According to Indian media reports citing airline and aviation sources, the aircraft briefly lost around 300 feet in altitude during the incident before the pilots safely regained control and completed the flight to Delhi.

The aircraft landed safely at Indira Gandhi International Airport, where medical personnel were on standby. Reports said at least 12 people, including passengers and cabin crew, sustained injuries, while some outlets put the total number receiving medical attention at 14. The injuries were reported to be minor, although several individuals were taken to hospital for further evaluation.

For airlines, severe turbulence incidents can trigger aircraft inspections, operational reviews and regulatory reporting requirements, while also placing renewed focus on crew procedures and passenger safety protocols.

The aircraft involved in Tuesday’s incident was able to continue to its destination without further complications, and authorities are expected to review the circumstances surrounding the turbulence as part of standard aviation safety procedures.

Spotify forecasts slower growth despite AI investment

The company has launched AI features like “Personal Podcasts” and new offerings such as “Reserved” to attract more users and fend off competition

Reuters
Reuters

04 August, 2026

Spotify forecasts slower growth despite AI investment
Image: Getty Images

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Spotify forecast third-quarter profit and monthly active users below Wall Street estimates on Tuesday, underscoring the streaming service’s challenges in maintaining growth despite expanding its offerings of AI-based features to fend off competition.

Shares of the company were down around 4 per cent in premarket trading.

The company has launched AI features like “Personal Podcasts” and new offerings such as “Reserved” to attract more users and fend off competition from rivals including YouTube and Netflix, and AI music startups like Udio and Suno.

Separately on Tuesday, Spotify announced a new agreement with digital music licensing firm Merlin for the Swedish company’s upcoming paid tool for fan-made covers and remixing. It will allow artists on labels under Merlin’s Spotify agreement to participate.

The company said it expects operating income of €670m ($770.97m) in the third quarter, below analysts’ average estimates of €677.8m, according to data compiled by Visible Alpha.

In the second quarter, its operating income came in at €655m, beating estimates of €639.2m, driven by strong revenue growth and lower payroll taxes.

Such taxes, called social charges, are tied to the value of the company’s share price. The company’s stock has fallen about 16 per cent so far this year.

Spotify’s quarterly revenue rose 14 per cent to €4.78bn, slightly below LSEG-compiled estimates of €4.80bn. The revenue forecast of €5bn for the third quarter was slightly above estimates of €4.93bn.

Its monthly active users forecast of 788 million was below Visible Alpha estimates of 793.6 million, while its outlook for a 5 million increase in premium subscribers to 305 million was largely in line with estimates.

Guggenheim Abu Dhabi appoints inaugural museum director

Dr Valerie Hillings, who helped shape the museum during its development, will lead the Frank Gehry-designed institution as it prepares to open in Abu Dhabi’s Saadiyat Cultural District

Gareth van Zyl
Gareth van Zyl

04 August, 2026

Guggenheim Abu Dhabi appoints inaugural museum director
Pictured left: Dr Valerie Hillings

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Marking a major milestone ahead of its opening, Guggenheim Abu Dhabi has appointed Dr Valerie Hillings as its inaugural director, with the former Guggenheim curator set to lead the landmark institution as it prepares to become a centrepiece of Abu Dhabi’s cultural ambitions.

The appointment was announced on Tuesday by the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi), which said Hillings will oversee the museum’s strategic direction, inaugural exhibitions and public programmes as the long-awaited institution prepares to welcome its first visitors.

Located in Saadiyat Cultural District, Guggenheim Abu Dhabi is one of the emirate’s flagship cultural projects and will join Louvre Abu Dhabi, Zayed National Museum, Natural History Museum Abu Dhabi and teamLab Phenomena Abu Dhabi in what is being positioned as one of the world’s leading concentrations of cultural institutions.

Hillings brings extensive experience to the role and is closely associated with the museum’s development. Between 2009 and 2018, she served as curator and associate director of curatorial affairs for the Guggenheim Abu Dhabi Project at the Solomon R. Guggenheim Foundation, working with DCT Abu Dhabi on the museum’s collection strategy, acquisitions, pre-opening programming and the development of the Frank Gehry-designed building.

Since 2018, she has been director of the North Carolina Museum of Art, where she led a major reimagining of its permanent collection galleries, oversaw the acquisition of around 400 works and helped double annual attendance to 1.2 million visitors.

“I am honoured to return to Abu Dhabi to complete the once-in-a-lifetime journey of founding and opening Guggenheim Abu Dhabi, a museum developed in the United Arab Emirates by colleagues from both the region and around the world,” Hillings said.

“I look forward to welcoming local and global audiences to the magnificent Frank Gehry-designed building and inviting them to explore points of interconnection and unique stories through the lens of art from the 1960s to our time.”

Designed by world-renowned architect Frank Gehry, Guggenheim Abu Dhabi will focus on modern and contemporary art from the 1960s onwards, showcasing artists from across the world through an Abu Dhabi perspective. The museum’s collection, exhibitions, commissions, research and public programmes are intended to foster dialogue across cultures and generations while reinforcing the emirate’s position as a global centre for artistic innovation and creative exchange.

The museum will feature 30 galleries spanning 11,600 square metres of indoor exhibition space, complemented by 23,000 square metres of outdoor exhibition areas across its surrounding terraces and cones.

According to DCT Abu Dhabi, the scale of the institution will make it one of the world’s most significant museums dedicated to modern and contemporary art.

Dubai ride-hailing app Zed offers 15% cashback in August

The cashback mechanism is integrated directly into the Zed app through the Zed Wallet

Rajiv Pillai
Rajiv Pillai

04 August, 2026

Dubai ride-hailing app Zed offers 15% cashback in August
Image: Supplied

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Dubai-based ride-hailing platform Zed is offering customers 15 per cent cashback on eligible rides throughout August, as the company looks to strengthen customer loyalty by rewarding everyday travel across the emirate.

The promotion is available to both new and existing users and applies to taxi and premium ride bookings. Customers can earn cashback of up to Dhs20 per journey, with rewards automatically credited to their Zed Wallet for use on future trips.

The initiative comes as mobility providers increasingly compete on value-added services to retain customers amid rising demand for cost-effective urban transport.

According to Zed, the cashback programme is designed to help residents reduce the cost of routine travel, including daily commutes, metro connections, weekend outings and other everyday journeys.

The cashback mechanism is integrated directly into the Zed app through the Zed Wallet, allowing users to accumulate rewards over time without any additional steps after completing eligible rides.

The company said the programme reflects its broader strategy of combining convenience with financial incentives, offering riders a more rewarding experience while encouraging repeat usage of its homegrown ride-hailing platform.

Changes coming to Dubai schools: KHDA rolls out new rules for age limits, admissions

The guidance also introduces a transitional age cut-off for first-time registrants entering Dubai’s education system during the 2026–27 academic year

Nida Sohail
Nida Sohail

04 August, 2026

Changes coming to Dubai schools: KHDA rolls out new rules for age limits, admissions

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Dubai’s private education sector is set to begin the 2026–27 academic year under a significantly strengthened student placement framework after the Knowledge and Human Development Authority (KHDA) introduced comprehensive Student Placement Guidelines designed to standardise admission and progression decisions across schools and early childhood centres.

The new framework establishes clearer rules governing how students are placed into year groups, how schools should deal with transfers from overseas, and the limited circumstances under which exceptional placement requests can be considered. The guidance also introduces a transitional age cut-off for first-time registrants entering Dubai’s education system during the 2026–27 academic year, while reinforcing that academic performance, language barriers or parental preference alone cannot justify changing a student’s grade level.

Read more: Dubai halts private school fee hikes for 2026-27 academic year

The guidelines apply to students from Pre-KG (FS1) through Grade 9 (Year 10), covering all Dubai private schools and early childhood centres (ECCs). KHDA said Grades 10 to 12 remain outside the scope of the placement framework because they form part of internationally accredited qualification programmes, including IGCSEs, A Levels, the International Baccalaureate (IB) and Advanced Placement (AP), where placement decisions may affect external accreditation and equivalency.

Instead, placement decisions affecting senior secondary students must continue to comply with regulations issued by the UAE Ministry of Education, relevant international examination boards and KHDA’s regulatory framework.

Focus on consistency across Dubai schools

One of the central objectives of the new guidelines is to ensure greater consistency in how schools determine student placement, reducing variation between institutions while ensuring decisions are made in the best interests of children’s academic progress and wellbeing.

According to the guidelines, schools must follow Dubai’s official age-grade progression framework from Foundation Stage through Grade 9, with age remaining the primary criterion during the early years.

The regulator also clarified that schools should avoid using grade repetition as a solution for students experiencing academic difficulties.

Instead, schools are expected to provide differentiated instruction, targeted interventions and structured learning support within the student’s existing year group wherever possible.

The document emphasises that exceptional placement remains exactly that—an exception—and can only occur after a formal evidence-based review and written approval from KHDA.

New age cut-off takes effect in 2026–27

Among the most significant changes is the implementation of the updated Ministry of Education age cut-off beginning with the 2026–27 academic year.

However, KHDA described the upcoming academic year as a transitional implementation period.

The revised age requirement applies only to children registering in Dubai’s education system for the first time during 2026–27.

Students already enrolled in Dubai schools, those transferring between Dubai schools and children already registered within the KHDA system will continue under their existing educational progression without being affected by the revised admission rules.

The guidelines also introduce a one-time flexibility measure covering children born between September 1 and December 31, 2022, provided they have not previously been enrolled in any education setting.

These children may, during the transitional academic year only, be placed in either FS1 or FS2 depending on their developmental readiness and overall best interests.

Schools must document the evidence supporting their decision and retain records for future regulatory review.

The guidance makes clear that this flexibility applies exclusively during the 2026–27 academic year and cannot establish a precedent for future admissions.

Limited flexibility beyond early years

Beyond Foundation Stage admissions, KHDA has reinforced that movement between year groups should remain tightly regulated.

Once enrolled, students cannot subsequently move up or down a year group unless a formal exceptional placement process has been completed and approved.

For UK curriculum schools, readiness assessments may be used during the Foundation Stage entry process under the transitional arrangement, although this flexibility does not extend beyond Foundation Stage entry.

The regulator also confirmed that nurseries and early childhood centres must comply with the same official age-grade progression chart as private schools.

Retention or promotion outside prescribed age ranges requires explicit KHDA approval.

Transfers from overseas receive clearer guidance

The guidelines also address one of the more complex challenges faced by Dubai schools—students relocating from countries operating different education systems and age-entry requirements.

KHDA explained that children placed above their chronological age overseas should generally be realigned to the UAE’s official age-grade progression framework, particularly during the early years.

For children from Pre-KG through KG2, age remains the determining factor regardless of previous placement overseas.

However, greater flexibility exists from Grade 1 onwards.

Where students hold valid transfer certificates confirming completion of a higher grade, schools may use those certificates as the primary reference point.

If the overseas placement exceeds Dubai’s official age-grade chart by more than one year, schools must notify KHDA and seek exceptional placement approval before finalising admission.

The guidelines also recognise that some countries begin formal schooling later than the UAE.

Accordingly, seven-year-old students with no previous formal schooling may enter directly into Grade 1 if they meet the UAE’s age-entry requirements.

Schools are expected to bridge any literacy, numeracy or classroom routine gaps through structured intervention programmes rather than altering the student’s grade placement.

Poor academic performance no longer grounds for grade changes

One of the clearest messages throughout the framework is that weak academic performance does not justify exceptional placement.

According to the guidelines, poor examination results, interrupted schooling or delayed entry into education cannot by themselves support requests for grade repetition or alternative placement.

Instead, schools must demonstrate through objective developmental assessments that there is a significant mismatch between the student’s chronological age and functional readiness.

Only cases receiving High or Critical risk assessments under KHDA’s Risk Assessment and Rationale framework may proceed for exceptional placement consideration.

Similarly, English language proficiency alone cannot justify moving students into lower year groups.

Schools are instead expected to provide targeted English as an Additional Language (EAL) support, differentiated teaching strategies and structured learning plans within the student’s existing grade.

Parents cannot request grade repetition for maturity alone

KHDA has also tightened expectations surrounding parental requests for students to repeat Foundation Stage years.

The guidelines specify that parents cannot request repetition of FS1 or FS2 solely because they believe their child requires additional maturity.

Retention during the early years will only be considered following an evidence-based review demonstrating developmental risk and formal approval by KHDA.

Likewise, academically gifted students will generally remain with their chronological age group.

Rather than accelerating year placement, schools are expected to meet advanced learners’ needs through enrichment, extension activities and differentiated classroom instruction.

Returning students face structured assessment process

The new framework also addresses situations involving students returning after extended absences.

Where a student re-enrols with an incomplete transfer certificate, schools must first assess whether the child can successfully access the curriculum of the next year group.

If assessment demonstrates readiness, the student should progress while receiving targeted support through an Individual Learning Plan designed to address missed learning.

Where assessment indicates the student cannot access the next year’s curriculum, schools must prepare a comprehensive evidence package before requesting exceptional placement approval from KHDA.

An incomplete transfer certificate alone is insufficient grounds for repeating a year.

The guidance places responsibility firmly on schools to demonstrate that every available intervention has been considered before seeking regulatory approval.

Evidence requirements become more robust

To support exceptional placement applications, schools must submit a comprehensive evidence portfolio.

This includes KHDA’s Risk Assessment and Rationale Form, academic and developmental assessments, intervention records, Individual Education Plans or Individual Learning Plans, specialist reports where applicable, transition plans and signed parental consent.

The regulator also clarified that one-off reports will not satisfy evidence requirements.

Instead, schools must demonstrate ongoing intervention supported by measurable progress data, including recognised assessment tools and documented review cycles.

Schools must wait for KHDA approval

The guidelines reinforce that schools cannot implement placement changes before receiving written approval from KHDA.

The regulator indicated that complete submissions are generally reviewed within 10 working days, although requests requiring clarification may take longer.

Schools are encouraged to submit applications well in advance to avoid delays before the academic year begins.

Implementing placement changes before formal approval may constitute non-compliance under Executive Council Resolution No. (2) of 2017 and could result in regulatory action.

Greater accountability for schools

Beyond placement decisions themselves, the framework strengthens governance requirements across Dubai’s private education sector.

Every school must maintain a formal Student Placement Policy identifying a designated placement coordinator responsible for overseeing assessments, obtaining parental consent, liaising with KHDA and maintaining secure records linked to each student’s profile.

Schools are also expected to establish safeguarding procedures, escalation pathways and clearly defined assessment timelines.

Where approved placement changes occur, schools must monitor students through structured transition plans incorporating academic and wellbeing reviews after four weeks, eight weeks and at the end of the academic term.

Appeals process defined

The framework also introduces greater clarity regarding appeals.

Only schools, not parents, may submit appeals against placement decisions.

Appeals must be lodged within 30 days and include new supporting evidence for consideration by KHDA’s independent review panel.

Parents seeking reconsideration must work through their child’s school rather than applying directly to the regulator.

The guidance also explains when schools must submit a Non-Admission Notification (NON) form, particularly where admission is declined because of inclusion capacity or specific educational needs.

Safeguarding remains central

Throughout the document, KHDA repeatedly links placement decisions to student wellbeing.

Where schools believe an inappropriate placement is negatively affecting a child’s welfare, they are instructed to conduct an internal safeguarding review before escalating concerns to KHDA with supporting documentation.

The regulator may then intervene to protect the student’s right to education where necessary.

The emphasis on safeguarding reflects the broader philosophy underpinning the framework: that student placement should support long-term educational success rather than simply address short-term academic performance.

A more structured framework for Dubai’s growing education sector

The updated Student Placement Guidelines represent one of the most comprehensive attempts to standardise placement decisions across Dubai’s diverse private education sector.

By establishing clearer age-based progression rules, introducing stronger evidence requirements, clarifying overseas transfer procedures and reinforcing inclusive education practices, KHDA aims to provide schools with a consistent framework while protecting students from inappropriate placement decisions.

As Dubai continues to attract families from around the world, bringing together children from multiple curricula and education systems, the guidelines seek to balance regulatory consistency with flexibility where genuinely required.

At the same time, the framework reinforces a clear principle that runs throughout the document: student placement should be determined by evidence, developmental readiness and long-term educational outcomes, with exceptional placement remaining a carefully regulated process rather than a routine response to academic challenges.

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