'Dovish Hat Is Now Completely Off': DBS' Radhika Rao Says RBI's Rate Hike Cycle Has Begun
NDTV Profit 2 hrs ago·7 Oct 2026, 7:11 am
RBI has begun raising policy rates, ending its previous dovish stance, according to DBS senior economist Radhika Rao. The central bank signaled that inflation pressures remain a concern and that further tightening may follow.
For investors, higher rates raise borrowing costs for companies, can dampen consumer spending, and may weigh on equity valuations, especially in rate‑sensitive sectors like real estate and financials. The rupee could also feel pressure as capital flows adjust.
Market participants will be watching upcoming RBI policy meetings, inflation readings, and any guidance on the pace of future hikes. Global cues such as US Fed decisions may also influence the RBI’s approach, shaping the outlook for Indian equities and bonds.
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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