Indices end with marginal losses after RBI’s move on repo rate
At close, the Sensex was down 56.74 points or 0.07% at 81,709.12, and the Nifty was down 30.60 points or 0.12% at 24,677.80.
At close, the Sensex was down 56.74 points or 0.07% at 81,709.12, and the Nifty was down 30.60 points or 0.12% at 24,677.80.
In its last three meetings in April, June, and August, the RBI kept the repo rate unchanged at 6.5 per cent.
The moderation in the country's retail inflation in April has validated the Reserve Bank of India's (RBI) decision to pause the repo rate in its first 2023 monetary policy meeting, according to SBI Research.
"As financial conditions tighten, global financial markets are experiencing surges of volatility, with sporadic sell-offs in equity and bond markets, and the US dollar strengthening to a 20-year high," the minutes said.
The 50 basis points hike in the repo rate coupled with inflationary pressure is likely to impact the sentiment of the Housing sector particularly in the affordable and mid-range housing segments.
Hours after the Reserve Bank of India raised key lending rates, or repo rate, by 50 basis points to 4.9 per cent, global financial services company Moody's Analytics said the central bank could hike the repo rate by another 60 to 80 basis points through the rest of the year.
The Reserve Bank of India (RBI) is likely to hike the policy repo rate by 40 basis points to 4.80 per cent on Wednesday and increase the inflation forecast for the current fiscal to above 6 per cent from its earlier projection of 5.7 per cent, according to market analysts and economists.
RBI Governor termed the recent inflations as "transitory" and "driven by adverse supply side factors"
The central bank has retained growth projection of 10.5 per cent for the current financial year as was estimated in its February bi-monthly policy.
The cut is expected to impact all categories of loans offered by the bank.
