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...
World Bank funds road links for India, Myanmar, Bangladesh
Photo: Asia Briefing
June 19, 2014: The World Bank has approved $107 million in funding for a much-awaited project to improve roads connecting India, Myanmar and Bangladesh, Press Trust of India reported Thursday.

World Bank Country Director Onno Ruhl said, "Our Board has recently approved the road project in Mizoram, which will connect the state with Myanmar and Bangladesh."

The project will be financed by a credit from the International Development Association, the World Bank's concessionary lending arm that provides interest-free, 25-year loans with a five-year grace period.

The project will cover 91 kilometers of road widening and strengthening, including a 22-km section on the border with Bangladesh, a 27.5-km section on the border with Myanmar and 41.7 km connecting to border roads with Bangladesh to the west and Myanmar to the south.

Linkage with Bangladesh will facilitate bilateral trade and improve accessibility to Chittagong port, the nearest shipping port for the northeast.

Another 330 km of road works may be considered for a future project.

According to World Bank estimates, annual intra-regional trade in the area will increase from $16 billion to around $38 billion if the barriers were removed among the neighboring countries.

Another estimate suggests that investment in transport infrastructure could reduce trade costs by more than 20 percent in India and 12.5 percent in Bangladesh.

Courtesy: Global Post

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