Thread by @BiIndia

India’s central bank hikes interest rates by 50 bps to fight off ‘globalised’ inflation

businessinsider.in/finance/news/i…

By @jainrounak and @KatyaNaidu

The Indian central bank today raised its #interestrates – the second time in a month - by 50 basis points. This is higher than last month’s hike of 40 basis points and the base interest rate at which the central bank lends is now at 4.9%.

#RBI #RepoRate

"The #reporate still remains below its pre-pandemic level," @DasShaktikanta, the governor of Reserve Bank of India (RBI) said while making the announcement.

#RBI

This move is part of a long crusade that the Indian government and the central bank’s crusade against the rising cost of essentials and non-essentials in the country. For the month of April, the consumer price #inflation touched 7.8%, stressing out household budgets.

#RBI

The benchmark #Nifty50 and #Sensex were marginally in the red, reacting to #RBI’s rate hike. Experts, however, believe that the market has also “priced-in” the rate hike, meaning that the impact of higher interest rates has already been anticipated by the stock markets.

.@DasShaktikanta retained India’s #GDP estimate for FY23 at 7.2%, slightly lower than #IMF’s 7.5% forecast after its latest downward revision.