Four horsemen? RBI flags risks spooking the world

What happened: In a 4-2 vote, the RBI's Monetary Policy Committee shifted its stance from neutral to "calibrated tightening," signaling further rate hikes remain on the table. Governor Sanjay Malhotra flagged four global headwinds. Key numbers: Repo rate hiked 25 bps to 5.50%, first in nearly 4 years. Why it matters: The stance signals more hikes may follow as inflation pressures build. Malhotra cited West Asia conflict, tariff uncertainty, elevated bond yields and AI stock valuation correction risk as keeping global sentiment edgy, with risk-off sentiment on emerging markets.

In a 4-2 vote, the RBI's Monetary Policy Committee shifted its stance from neutral to "calibrated tightening," signaling further rate hikes remain on the table. Governor Sanjay Malhotra flagged four global headwinds.

The stance signals more hikes may follow as inflation pressures build. Malhotra cited West Asia conflict, tariff uncertainty, elevated bond yields and AI stock valuation correction risk as keeping global sentiment edgy, with risk-off sentiment on emerging markets.