The Pentagon and Lockheed Martin (LMT.US) have reached a framework agreement to accelerate the production of new air-to-air missiles.

(1) The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.5% on Wednesday, marking the first rate hike in nearly four years. (2) Sachchidanand Shukla, Chief Economist at Larssen & Toubro Group, stated that the 25 basis point rate increase has basically been priced in by the market, but the shift in policy stance suggests that even if food or crude oil prices reverse, the central bank has effectively committed to further rate hikes. (3) Radhika Rao, Senior Economist at DBS Bank, commented that the rate hike by the Reserve Bank of India in October indicates that cyclical inflation risks are no longer mild. The policy shift also reflects the hawkish intentions of its monetary policy committee. Amid high oil prices, tightening global financial conditions, and the risk of adverse weather potentially fueling food inflation, policymakers are opting to reinforce their anti-inflation credentials before inflation risks become entrenched.

The Reserve Bank of India stated that if crude oil prices are 10% lower than the benchmark level, GDP growth may increase by 15 basis points.

The Reserve Bank of India stated that if crude oil prices rise by 10% above the benchmark level, the overall inflation rate will increase by 50 basis points.

The South Korean government announced that the private sector will invest 220 trillion won in key energy transition projects. Under the green transition strategy, 100 trillion won (approximately $747 billion) will be invested over a 10-year period.