Indian Interest Rates Surge to a Whopping 9%

Common man's woes continue to rise and hopes continue to slide down in a slow spiral.

The latest addition to brick in stomach syndrome is that India's central bank has increased its key interest rate to 9% from 8.5% in a bid to dampen surging inflation.

It is the third time in two months that desi interest rates have risen... and as if to sadistically douse even a flicker of hope, there are more rate rises expected in the coming months. Inflation in India is running at a 13-year high, thanks largely to the escalating cost of food and fuel, which is strangling the spending power of India's poor. That's not to say the common man is celebrating with glee.

In an attempt to discourage lending, the Indian Reserve Bank also raised the level of minimum cash reserves banks must hold in relation to customer deposits. A limp Sensex tumbled on its head after the rate rise on worries that car and home loans will become more expensive, slowing consumer spending.

India imports two-thirds of its oil requirements.

Build that freaking pipeline to Iran already!!