Explained: How RBI rate hike may impact Sensex, Nifty after 8-week losing streak
The Reserve Bank of India is expected to announce a 25-basis point interest rate hike to combat inflation. Analysts suggest the market has already priced in this move, potentially limiting the impact on the Sensex and Nifty indices.
Why it matters
Central bank interest rate decisions are critical drivers of national economic health and stock market volatility.
RBI Governor Sanjay Malhotra is likely to announce the MPC’s decision to hike rates tomorrow, but analysts believe that the stock market may not be sharply impacted by it after the recent selloff as the hike has already been priced in.The Reserve Bank of India (RBI) is holding its Monetary Policy Committee (MPC) meeting from October 5 to October 7. This marks the Indian central bank's first such meeting after the US Federal Reserve increased rates last month.
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