No rate cuts in future? Only rate hike or pause? What RBI Governor Sanjay Malhotra said; what it means for Sensex, Nifty
AI Summary
The RBI's recent rate hike signals a shift towards a more cautious monetary policy, which could lead to increased borrowing costs and pressure on rate-sensitive sectors such as banking, real estate, and automobiles. Retail investors should brace for potential volatility in the stock market as the removal of rate cut expectations may lead to valuation compression. However, the RBI's optimistic GDP growth forecast suggests that the underlying economic fundamentals remain strong, providing a buffer against significant market downturns.
RBI MPC meeting October 2026: After announcing a 25bps rate hike, Reserve Bank of India (RBI) Governor Sanjay Malhotra said the rate cuts in the near-term are unlikely given the prevailing economic conditions.
He indicated that the central bank’s next policy action could therefore be either a rate hike or a pause, depending on how the economic outlook and conditions develop.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 07 October 2026.
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