Policy▼ Bearish for Indian equities
RBI poised for first rate hike in almost four years as rupee and inflation weigh
The brief
- The move would be the first rate hike under Governor Sanjay Malhotra
- Higher rates could pressure borrowing and rate-sensitive Indian sectors, while affecting banks’ funding costs
- RBI could keep rates higher for longer amid global and local risks
- 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’s expected repo rate hike
Ahead of the October 7 policy, polls and analysts widely expected the RBI to raise the repo rate by 25 basis points, with one poll putting it at 5.5%. Inflation, higher oil prices and rupee weakness were cited as pressures; Crisil said India Inc could manage a 50-basis-point hike.
Tuesday, 6 October
- RBI poised for first rate hike in almost four years as rupee and inflation weigh