The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason

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SumanSpeaks Independent Capital Markets & Geopolitical Intelligence RBI Policy Decoded The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason The RBI raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. With the rupee at ₹96.78 to the dollar, the Fed at 3.75–4.00 percent and bank credit growing near 18 percent, the fuller story is bigger than August CPI of 4.8 percent. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. It is the first hike since February 2023, and the stance has moved from neutral to calibrated tightening. The rate decision was unanimous. The Governor cited inflation. The Monetary Policy Committee said the inflation outlook is no longer as comfortable as it was last year, and near-term rate cuts were taken off the table. That is the official story, and it is not wrong. But it is incomplete. Look at what surrounds the decision: a rupee near its record...
Government Takes Several Steps to Increase Power Generation Capacity in Renewable Energy
The Minister of New and Renewable Energy, Dr. Farooq Abdullah informed Lok Sabha that total installed capacity of power generation in the country is 2,10,544 MW. This includes 26,267 MW from various renewable energy sources. The contribution of renewable energy is about 12.45% in the total installed capacity. A target of 30 GW grid interactive renewable power capacity addition, comprising 15 GW from wind, 10 GW from solar, 2 GW from small hydro and 3 GW from biomass has been proposed for the Twelfth Five Year plan period.
The Government has taken several steps to increase power generation capacity of renewable energy sources. These include:
• Fiscal and financial incentives, such as, capital/ interest subsidy, accelerated depreciation, concessional excise and customs duties;
• Preferential tariff for grid interactive renewable power in most potential States.
• A minimum percentage for purchase of electricity by distribution companies from renewable energy sources.
• Guidelines by CERC to SERCs for fixation of preferential tariffs.
• Jawaharlal Nehru National Solar Mission to give a boost to deployment solar photovoltaic as well as solar thermal systems.

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