Fed raises rates by 25 bps; RBI likely to hike repo rate
after close1 source ↓written by the desknot a recommendation
- policy rate
- 25 basis points
- 3.75%-4%
- and inflation risks
- $100
The US Federal Reserve increased its policy rate by 25 basis points, marking its first hike since July 2023, now at 3.75%-4%. This move raises concerns for Indian markets, especially with crude oil prices above $100 and inflation risks mounting. Experts anticipate the RBI may respond with a repo rate hike to 5.75% by FY27, as the combination of higher US rates and a weaker rupee intensifies inflation pressures.
Not investment advice. For informational purposes only.