Policy▼ Bearish for Indian equities
RBI could keep rates higher for longer amid global and local risks
The brief
- RBI signals a shift towards higher interest rates
- Global and local risks are in focus
- Higher rates may weigh on banks and rate-sensitive Indian stocks
- RBI outlines five priorities for financial stability as global risks grow more interconnected
- RBI backs tokenisation and distributed ledgers but remains cautious on cryptocurrencies
- RBI governor flags geopolitical shocks, cyberattacks as potential triggers of next financial crisis
- RBI Governor sees AI valuation correction as India opportunity but flags global risks
- RBI governor warns against complacency as global risks and West Asia conflict threaten stability
RBI rate outlook and inflation risks
Economists and research firms increasingly expect the RBI to raise the repo rate by 25 basis points in October, citing inflation, elevated crude prices, rupee weakness and global risks. The RBI has held the rate at 5.25% for four consecutive meetings after cumulative cuts of 125 basis points.
Sunday, 4 October
- RBI could keep rates higher for longer amid global and local risks