Researched and collated by: Vagda Galhotra & Sheya Kurian

RBI raises interest rates, again

To fight soaring inflation, the Reserve Bank of India has raised the repo rate by 50 basis points to 4.9%. This is the second hike in a single month. The repo rate is the rate at which the RBI lends money to banks, and here why it matters:

“It serves as the benchmark for interest rates in the country. Loans to prospective homeowners, car buyers, as well as big and small businesses will now turn expensive as banks pass on the rate hike without demur.”

The aim is to make money more difficult to access—which brings down demand and therefore prices. Point to note: Inflation hit an eight-year high of 7.79% in April—and has remained above 6% since January. And the central bank doesn’t expect it to get any better in the short run. But the real worry here is “stagflation”—rising prices accompanied by stagnant economic growth. Dampening demand could also damage growth. (The Telegraph)

In slightly better news: The RBI will now allow you to link your credit cards to your Unified Payments Interface account. Until now, it had been limited to debit cards or bank accounts. For now, however, only Rupay credit cards can be linked. (Mint)

In other finance-related news: The Enforcement Directorate has ordered banks and payment gateways to freeze the accounts of around 100 fintech startups. These included well-funded companies like Pagarbook, Propelld, Progcap, Pocketly and Krazybee. The ED has not offered any reason for its actions, but according to one founder—who answered a detailed questionnaire to unfreeze his accounts—“they broadly want to know whether you are lending Chinese money or if you have any Chinese connection.” (Mint)

Crackdown on maskless passengers

Indian aviation authorities have directed airlines and airports to make sure that passengers wear masks at all times. Those who fail to comply could be taken off the plane—or treated as “unruly passengers” and barred from flying for a minimum of three months. The crackdown comes after the Delhi High Court issued an order to ensure compliance of Covid norms on the ground. (The Hindu)

Cracking down on device chargers: The European Union will soon require all electronic devices to have a universal USB-C port by fall 2024. What this means: you can use the same charger for all of them. For now, the rule covers phones, tablets, digital cameras, headphones, handheld video game consoles, and e-readers. And it will mainly hurt Apple—because it has the only phone that still uses a unique port. But iPhone users—plagued by easily damaged, expensive chargers—will rejoice. The aim of the legislation is to reduce e-waste. (The Verge)

Also making new rules: The International Skating Union—which voted to raise the minimum age of professional skaters to 17. The reason: “burnout, disordered eating, and long-term consequences of injury” pose a huge risk to young teenage skaters pressured to perform. This became glaringly obvious in the case of Russian national champion Kamila Valieva at this year’s Beijing Games—who was caught in a doping scandal (explained here). The limits will be raised in phases—with 15-year olds still able to compete next year. (Associated Press)

Two key rankings of interest

One: India is at the rock-bottom of the Environment Performance Index—which rated 180 countries on how well they are dealing with environmental challenges, and adhering to policy targets. The others in the bottom five: Pakistan, Bangladesh, Vietnam and Myanmar. At the top: Denmark—followed by the UK, Finland, Malta and Sweden. The Indian government has dismissed the ranking saying the indicators used are “based on unfounded assumptions.. surmises and unscientific methods.” (Indian Express)

Two: Hong Kong is once again the most expensive city in the world to live in—according to the ECA index which rates cities for expats and foreign workers. In fact, Asia is the most expensive continent, with five cities—Hong Kong, Tokyo, Shanghai, Guangzhou and Seoul—in the top 10. Most European cities have become more affordable because of a falling euro—except for Geneva, Switzerland, which came in at #3 after New York City. The cheapest for expats: Ankara, Turkey, which fell five spots to #207. (Bloomberg News via Business Standard)

Two key studies of note

One: New research shows that people who recovered from Covid often struggle at work—experiencing cognitive issues at work, such problems with memory, attention and concentration. More importantly, they rated their own performance more poorly—and showed greater intent to leave their job. Why this matters: Employers may need to give even fully recovered employees a break at the office—including reducing workload, extending deadlines and providing flexible work arrangements. (Medical Xpress)

Two: Food researchers in Norway discovered the following about the sponge we all use to clean our dishes:

“Salmonella and other bacteria grow and survive better in sponges than in brushes, the reason is that sponges in daily use never dry up. A single sponge can harbour a higher number of bacteria than there are people on Earth.”

No, it doesn’t really matter how you clean your sponge or how often. Though to be fair, most of these bacteria will not cause disease. But if this finding gives you pause, scientists recommend using brushes instead. Or change your sponge every 2-3 weeks. (CNN)

Saving Mamata’s good name

The Kolkata police went all the way to Goa to arrest YouTuber Roddur Roy for making derogatory remarks about CM Mamata Banerjee. He apparently used expletives to curse Banerjee, her nephew Abhishek Banerjee and other Trinamool leaders during a Facebook Live session. Just in case you thought only the BJP has a thin skin… FYI: Roy also got into legal trouble in 2020—when he replaced the lyrics of Rabindranath Tagore songs with expletives. (Scroll)

One thing to see

Matthew McConaughey—a native of Uvalde, Texas—visited the White House, and made a passionate pitch for gun reform. His wife, Camila, held the shoes worn by 10-year-old Maite Rodriguez when she was killed in the Uvalde school shooting. McConaughey explained:

“Maite wore green high-top Converse with a heart she had hand-drawn on the right toe. These are the same green Converse on her feet—that turned out to be the only clear evidence that could identify her."

See the sneakers below. (Axios)