Opinion by Mathew Carr
What a scammer and a sham. Now India climate action is more expensive and less likely …just when the world needs it to be less expensive and more likely.
Malhotra and his committee members just increased India’s interest rates by 0.25 of a percent, completely falling into the trap laid by Donald Trump and his greedy banker mates…who set up the fake Iran war that has achieved nothing positive.
Indeed, Trump’s fake war is why the S&P 500 was at another record high yesterday (Tuesday).
Greed. Greed. Greed.
US multinational companies (and others) have deliberately exaggerated inflation to fraudulently widen profit margins.
The markets know this. The press and regulators, captured by those same bad capitalists, pretend they don’t know it.
Dishonest Malhotra knows higher rates don’t help solve war inflation and climate-related-food inflation.
Yet he justifies higher rates by citing them. Wtf?
That is fraud.
Now …renewable energy projects across India will be more expensive because of the higher cost of money.
My warnings about this during the past week have fallen on deaf ears:
Gemini:
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) raised the benchmark repo rate by 25 basis points to 5.50% (up from 5.25%).
Key Details
- Policy Stance Shift: The MPC voted to change its monetary stance from “neutral” to “calibrated tightening”.
- Vote: The decision to increase the repo rate was unanimous across all six members of the MPC. The vote to shift the stance to calibrated tightening passed 4–2.
- Context: This marks the RBI’s first interest rate hike since February 2023.
Drivers & Economic Outlook
- Inflation & Commodity Pressures: RBI Governor Sanjay Malhotra cited elevated global crude oil prices (surpassing $100/barrel), Middle East geopolitical tensions, a weaker rupee, and weak monsoon conditions as primary drivers forcing the rate increase.
- Macroeconomic Forecasts:
- GDP Growth: Projected up to 7.1% for FY27 (lifted from 6.7%) following stronger-than-expected first-quarter GDP growth.
- CPI Inflation: Forecast revised upward to 5.2% for FY27 (up from 5.0%).
- Forward Guidance: Governor Malhotra noted that inflation is no longer benign and explicitly stated that “rate cuts are off the table in the near term”.
Direct Financial Impacts
Facility / Indicator Previous New Rate
Repo Rate 5.25%5.50%
Standing Deposit Facility (SDF)5.00%5.25%
Marginal Standing Facility (MSF) & Bank Rate5.50%5.75%
- Loans & EMIs: Floating-rate loans tied to the External Benchmark Lending Rate (EBLR) or Repo-Linked Lending Rate (RLLR)—including most home and personal loans—will adjust upward accordingly.
- Deposits: Commercial banks are expected to incrementally raise Fixed Deposit (FD) rates to attract liquidity.