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Impact of rate hikes on financial markets

Parv Shah | Updated on: May 24, 2022

Here is a detailed look at the impact of rate hikes on Indian financial markets

Owing to high inflation numbers, RBI raised the repo rate by 40 basis points in early May. Since 2001, there have been four rate hike cycles in India during 2005-08, 2010-2011, 2013-14 and 2018-19 of which 2005-08 and 2010-2011 were the serious rate hike cycles. Though inflation is high, rapid monetary policy tightening can hurt the business sentiment and impede nascent economic recovery.

Here is a detailed look at the impact of rate hikes on Indian financial markets, and comparison with US Fed rate hikes is done for better understanding.

Published on May 24, 2022
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