India joins global rate-tightening wave with first hike in nearly 4 years
The unanimous move follows rising inflation and strong growth, with the central bank saying rate cuts are off the table for now.
- On Wednesday, the Reserve Bank of India raised its policy repo rate by 25 basis points to 5.50%, marking the first rate increase in over three years.
- Governor Sanjay Malhotra cited challenging global geopolitical developments as the central bank shifted its policy stance to 'calibrated tightening' to manage persistent economic pressures.
- Following the RBI's decision, major public sector banks including Indian Bank, Bank of Baroda, and Bank of India raised repo-linked lending rates to 8.35%, effective October 8.
- Lata Pillai, senior MD and head, Capital Markets, India, JLL, warned that 'floating home rates will be repriced' and higher construction costs will likely impact mid-segment affordability.
- Headline inflation is projected to average almost 5.8% over the next three quarters, with Puneet Pal of PGIM India Mutual Fund noting that 'recalibrating the policy rate is imperative.
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137 Articles
(Hanoi=Yonhap News) Correspondent Park Jin-hyung = As economic growth in India remains strong amid rising prices and a weak rupee, the Reserve Bank of India (RBI)... for the first time in 3 years and 8 months
Observador
Noticias ao MinutoGovernor of the Central Bank of India says there are early signs of widespread inflation, which is expected to reach 5.2% this year, due to the disturbances caused by the war in the Middle East.
India joins global rate-tightening wave with first hike in nearly 4 years
India's central bank raised its benchmark repo rate by 25 basis points to 5.5% on Wednesday, marking the first rise in nearly four years amid mounting inflation and strong economic growth.
The Indian central bank is expected to raise its interest rates this Wednesday, for the first time in almost four years. A decision that comes as inflation rises, oil is traded around $100 per barrel and rupee is close to its lowest historical level against the dollar. At the same time, foreign investors are reducing their exposure to Indian assets.
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