RBI hikes rate, but analysts see shift to ‘calibrated tightening’ as bigger takeaway. How can this impact markets?

Oct 7, 2026

RBI’s 25-bps repo rate hike to 5.50% was largely expected, but its shift to ‘calibrated tightening’ surprised markets and signals that near-term rate cuts are unlikely. Analysts expect selective pressure on rate-sensitive sectors, while banks with stronger balance sheets may remain relatively better placed amid rising inflation and crude prices.

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