The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason

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SumanSpeaks Independent Capital Markets & Geopolitical Intelligence RBI Policy Decoded The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason The RBI raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. With the rupee at ₹96.78 to the dollar, the Fed at 3.75–4.00 percent and bank credit growing near 18 percent, the fuller story is bigger than August CPI of 4.8 percent. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 percent on 7 October 2026. It is the first hike since February 2023, and the stance has moved from neutral to calibrated tightening. The rate decision was unanimous. The Governor cited inflation. The Monetary Policy Committee said the inflation outlook is no longer as comfortable as it was last year, and near-term rate cuts were taken off the table. That is the official story, and it is not wrong. But it is incomplete. Look at what surrounds the decision: a rupee near its record...
Pre-Session: Shares may open lower on weak global cues
20-Mar-18: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 27 points at the opening bell on weak global cues.

Overseas, Asian shares declined as investors braced for new Federal Reserve Chairman Jerome Powell's first policy meeting starting later in the day. Investors also have been worrying this month about a potential global trade war, triggered by the Trump administration moving ahead with tariffs on foreign steel and aluminum.

US stocks finished sharply lower Monday as concerns about Facebook Inc.'s management of user data sparked a selloff in technology shares. Investors also lightened their positions ahead of the Fed's policy meeting.

The US Federal Reserve's two-day monetary policy meeting is scheduled on March 20-21. Strengthening labor market and a steady increase in price pressures could pave the way for the Federal Reserve to raise interest rates in upcoming meeting. The US central bank has forecast three rate increases for this year, but there are also expectations that it will raise its projection to four hikes at the meeting.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 292.23 crore yesterday, 19 March 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 191.52 crore yesterday, 19 March 2018, as per provisional data.

The domestic market declined on a broad-based selling pressure yesterday, 19 March 2018. The barometer index, the S&P BSE Sensex, fell 252.88 points or 0.76% to settle at 32,923.12. The Nifty 50 index dropped 100.90 points or 0.99% to settle at 10,094.25. The Sensex settled below the psychological 33,000 level after slipping below that level in intraday trade. The Sensex fell for the fifth straight session while the Nifty declined for the fourth straight trading session. Both the Sensex, and the Nifty, hit lowest closing level in more than 12 weeks.

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