▲ Bullish for Indian equities
Rate hikes are coming, but don’t count credit growth out just yet
The brief
- Strong growth, ample liquidity and structural demand may sustain India's credit upcycle despite expected rate hikes
- Resilient credit growth would support Indian banks despite higher rates
- Result of the Overnight Variable Rate Reverse Repo (VRRR) auction held on October 05, 2026
- Ether's bitcoin-beating Q3 rally came with a catch. Liquidity thinned.
- Money Market Operations as on October 01, 2026
- Deposit growth gets a leg-up for banks in Q2 due to FCNR(B) mobilisation
- RBI Policy Preview: Still prefer RBI to hold rates, drain liquidity first and signal intent via change in stance
India bonds and RBI rate outlook
Indian government bonds fell amid rising US Treasury yields and increased supply ahead of the RBI meeting. Reports anticipate RBI cash withdrawals pressuring shorter maturities and rate hikes, while strong growth, ample liquidity and structural demand could support credit growth.
Monday, 5 October
- Rate hikes are coming, but don’t count credit growth out just yet