Rate hike was expected. But RBI reinforces hints that more are coming
The Reserve Bank of India raised the policy repo rate by 25 basis points to 5.5% and shifted its stance to "calibrated tightening." This indicates that interest rate cuts are unlikely soon, with future actions potentially involving further hikes or pauses, as stated by RBI Governor Sanjay Malhotra. Market participants should brace for a prolonged period of higher rates.