India's RBI hikes rates by 25 basis points to 5.5% to curb inflation
Indian shares trimmed losses after the Reserve Bank of India hiked its benchmark repo rate by 25 basis points to 5.5% to counter inflationary pressures, while financial stocks reversed early declines.
(Updates throughout, adds analysts' comments) By Bharath Rajeswaran Oct 7 (Reuters) — Indian shares were off lows on Wednesday, as financial stocks reversed early declines after the central bank raised interest rates as expected to counter inflationary pressures from the Middle East war. 5%, its first increase since February 2023, joining major global central banks in raising interest rates. The central bank changed its policy stance to "calibrated tightening," citing growth and inflation risks due to higher oil prices and global monetary policy tightening. "The key takeaway is that RBI is open to calibrated tightening, but the policy path will hinge on crude prices.
With growth prospects strong, the central bank can remain nimble, that's the one positive aspect what has been an expected decision," said Kranthi Bathini, director of equity strategy at Wealthmills Securities. m. IST. 7% ahead of rate decision.
3%. 2% higher. 8%, respectively. Banks recovered as the policy rate hike is expected to bolster margins in the second half of the fiscal year through repricing of benchmark lending rate-linked loans, with larger private lenders seen as key beneficiaries, said Dnyanada Vaidya, research analyst for BFSI at Axis Direct in Mumbai.
6%, respectively. 7%, with analysts flagging weaker-than-expected growth in the firm's jewellery segment. 5 as storm risks to US oil output and Houthi attacks on Saudi Arabia outweighed increased Middle East supply. com; +91 9769003463;)