MPC minutes: Two more interest rate hikes on cards, maybe even a third
Economic Times 2 hrs ago·22 Oct 2026, 7:26 pm
The Monetary Policy Committee’s minutes signal that the RBI is likely to raise rates by another 25 basis points in both the December and February meetings, with a third 25‑bp increase in April still on the table if crude oil prices stay above $100 a barrel.
Higher rates generally raise borrowing costs for companies and consumers, which can dampen earnings growth and put pressure on equity valuations, especially in sectors sensitive to financing costs. A tighter policy stance may also support the rupee, influencing import‑export margins and foreign‑currency earnings.
Investors should keep an eye on upcoming inflation readings, oil price movements, and any further comments from the RBI for clues on whether the April hike will be confirmed and how the terminal rate outlook may evolve.
Excerpt from Economic Times
Market participants and economists now expect a 25-bps increase in the December and February reviews. A further 25-bps increase in April isn't ruled out if crude oil prices remain persistently above $100. One basis point is a hundredth of a percentage point. "After the minutes were released, we think the probability…Read the original at Economic Times
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- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
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