RBI MPC interest rate decision in focus: Can a 25 bps hike trigger a market sell-off?

What happened: The RBI MPC is expected to raise the repo rate by 25 basis points on Wednesday, October 7, its first hike since February 2023, following rate increases by the US Federal Reserve, Bank of Japan and European Central Bank in September. Key numbers: Retail inflation rose to a 20-month high of 4.82% in August, above the RBI's 4% Why it matters: Analysts say the hike is largely discounted and unlikely to hurt sentiment, with the RBI chief's commentary on growth and inflation in focus. A hike could help bank margins, while oil and crop prices are seen as the main market drivers.

The RBI MPC is expected to raise the repo rate by 25 basis points on Wednesday, October 7, its first hike since February 2023, following rate increases by the US Federal Reserve, Bank of Japan and European Central Bank in September.

Analysts say the hike is largely discounted and unlikely to hurt sentiment, with the RBI chief's commentary on growth and inflation in focus. A hike could help bank margins, while oil and crop prices are seen as the main market drivers.