RBI Rate Hike: More Tightening Ahead? What Investors Should Expect Next

The RBI’s 25 basis points rate hike was largely expected by markets, limiting any sharp knee-jerk reaction. With rate cuts now off the table and another 25 bps hike potentially possible by year-end, investors are watching the path of monetary tightening closely. Abhishek Basumallick, Co-founder & Fund Manager, Shree Rama Managers, and Prateek Ancha, Chief Economist, Axis Capital, explain how tighter monetary conditions could impact rate-sensitive sectors, liquidity and policy transmission. The discussion also looks at the RBI’s decision to keep CRR unchanged, overnight rates and the outlook for bank credit growth as the central bank maintains tighter liquidity conditions.