Mkts to react –ve to RBI rate hike move on Monday: Experts
Published on Fri, Mar 19, 2010 at 23:04 | Source : CNBC-TV18
Updated at Sat, Mar 20, 2010 at 00:38
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Mkts to react –ve to RBI rate hike move on Monday: Experts
The Reserve Bank has raised its short-term borrowing and lending rates by 25 basis points each. what impact would the rate hike have on stock and bond markets on Monday?
The Reserve Bank of India has raised its short-term borrowing and lending rates by 25 basis points each. The measures are intended to anchor inflationary expectations and check price pressures. It has raised the reverse repo rate to 3.5% and the repo rate to 5% with immediate effect. So, what impact would the rate hike have on stock and bond markets on Monday?
Reacting to the hike, Rakesh Rawal, Head of Private Wealth Management, Anand Rathi Financial Services, told Reuters that there has been much political furore over inflation and to be seen as doing nothing has probably become unbearable. "This is mainly done to curb the uproar over inflation." Inflation in March is expected to touch 10.2%. He does not think a 25 basis points is going to make much of a difference on the ground. "Everyone realises inflation is being driven by supply side issues."
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The Reserve Bank of India has raised its short-term borrowing and lending rates by 25 basis points each. The measures are intended to anchor inflationary expectations and check price pressures. It has raised the reverse repo rate to 3.5% and the repo rate to 5% with immediate effect. So, what impact would the rate hike have on stock and bond markets on Monday?
