RBI Hikes Repo Rate by 50Bps; Bank Rate Figures & Das on Indian Economy

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RBI Hikes Repo Rate by 50Bps; Bank Rate Figures & Das on Indian Economy
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The Monetary Policy Committee (MPC) of RBI hiked the repo rate by 50 basis points on Sept 30 for the third consecutive time, taking the benchmark lending rate to 5.9% after a three-day policy meeting starting on Sept 28.

The central bank’s six-member benchmark rate-setting panel retained its ‘Withdrawal of Accommodation’ stance in a 5:1 vote, to arrest the soaring inflation under the target 2-6% tolerance band.

RBI’s decisions on Friday come in line with the market’s expectations, following which the benchmark equity indices Nifty50 and Sensex have surged up to 0.9% each after opening the session in the red.

The Standing Deposit Facility (SDF) rate is adjusted at 5.65%, while MSF and bank rate is revised to 6.15%.

Regarding the inflation trajectory, RBI Governor Shaktikanta Das states that it remains clouded with uncertainty. 

“After two shocks of the coronavirus pandemic and the conflict in Ukraine, now we are in the midst of another shock, a storm, arising from aggressive monetary policies by the global central banks,” Das said.

However, the Indian economy remains resilient despite global headwinds amid mounting global recession fears and high inflation, the Governor added.

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  • Ram Rahman @Ram Rahman
    nifty 50 become a global leader of stock market....
    Like 3
  • Sanjay Kumar @Sanjay Kumar
    ideally market doesn't like rate hike , but market is already falling since last couple of weeks, may be market digest this news
    Like 0
    • S S Sss @S S Sss
      markets react to surprises... a 50 bps rate hike was known to all since ages .. it was not at all a surprise.. that's why nifty didn't fell
      Like 0
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  • Sanjay Kumar @Sanjay Kumar
    ideally market doesn't like rate hike , but market is already falling since last couple of weeks, may be market digest this news
    Like 0
  • M Tanwar @M Tanwar
    Good decision
    Like 1
  • sanju vishwakarma @sanju vishwakarma
    what will be effect in market
    Like 0
  • Deepak Belani @Deepak Belani
    Ab market upr jaayega ya niche ?
    Like 0
    • Dipak Dave @Dipak Dave
      @Deepak Belani Market ka expectation was 0.50 hike.. and not more. So naturally, it will go up as it has already happen as expected position of 0.50bp hike! :)
      Like 0
    • Dipak Dave @Dipak Dave
      The question is .. whether deposit rates also will be increased by Bank? When..?? Bank will delay this deposit rate increase  & thereby will earn more.. so that Bank NIFTY has gone up!!
      Like 0
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