Indian stock market is surging after announcement of RBI MPC meeting outcome as market is expecting economic growth to gain momentum after pause in interest rate hike
So far this year banking stocks have been an underperformer even as credit growth has been encouraging. However, deposit growth has lagged that has led to concerns over contraction in margins.
The monetary policy committee (MPC), which is responsible for fixing the benchmark interest rate in India, is currently meeting. What are the odds the committee would further hike key policy rates? Mint explains the options and their implications
If one goes by the signal given by the Economic Survey and combines the same with the Budget indicative borrowing programme, it does appear that there is a strong case for RBI to hike rates one more time. After that there could be a long pause
With core inflation continuing to be high, credit rating agencies like Acuite Ratings & Research and CARE Ratings do not expect any significant downtrend in the retail inflation for the next few months