Policy▼ Bearish for Indian equities
Policy response
The brief
- The article argues there are compelling reasons for an increase in the repo rate
- Higher rates would raise borrowing costs for Indian banks, lenders and rate-sensitive companies
- RBI could keep rates higher for longer amid global and local risks
- RBI MPC must raise rates as inflation and external risks rise
- RBI MPC: beginning of a short and calibrated hike cycle
- ‘Inflation risk may tilt RBI towards 25-bps rate hike’: Economists
- Rate cut cycle near turning point. What lies ahead for Indian bonds?