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RBI hikes repo rate by 50 bps: Here’s how market analysts, economists, experts reacted

The hike in RBI's key interest rates was largely anticipated and was mostly factored in the domestic stock market where the S&P BSE Sensex fell by a modest 214.85 points (0.39 per cent) to end at 54,892.49 while the Nifty 50 slipped to 60.10 points (2.29 per cent) to settle at 16,356.25. Here's how various market analysts, economists and experts reacted to RBI's rate hike.

shaktikanta das, rbi governor shaktikanta dasReserve Bank of India (RBI) Governor Shaktikanta Das arrives for a press conference at RBI headquarters, in Mumbai, Wednesday, June 8, 2022. (PTI Photo)

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday hiked the repo rate by 50 basis points (bps) to 4.90 per cent. Consequently, the standing deposit facility (SDF) rate too was adjusted to 4.65 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.15 per cent.

The MPC also decided unanimously to remain focused on the withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth.

The latest move by the central bank was taken in a bid to contain the rising inflation, which has remained above the RBI’s target of 6 per cent for the past four months.

RBI’s move was largely anticipated and was mostly factored in by the market participants as there was no knee jerk reaction in the benchmark indices that ended 0.4 per cent lower on Wednesday. The S&P BSE Sensex fell 214.85 points (0.39 per cent) to end at 54,892.49 while the Nifty 50 slipped to 60.10 points (0.37 per cent) to settle at 16,356.25.

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Here’s how market analysts, economists and experts reacted to RBI’s rate hike:

 

 

 

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First published on: 08-06-2022 at 16:55 IST
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