Policy● Neutral for Indian equities
RBI October 7 policy: Hawkish commentary key as rate hike largely priced in, say experts
The brief
- Suyash Choudhary expects a 25-basis-point hike accompanied by relatively hawkish commentary
- Bond markets will look for the policy commentary alongside the expected rate move
- Bond-market reactions to RBI guidance can affect Indian banks and other rate-sensitive stocks
- India bond yields remain under pressure ahead of RBI verdict
- What it will take for bond yields to drop
- Government cuts FY27 borrowing plan, but bond market remains wary: SBICAPS
- Auction of Government of India Dated Securities
- RBI fixes 6.45% govt bond rate: How it works, interest payment explained
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 October 7 policy: Hawkish commentary key as rate hike largely priced in, say experts