WS #15427
The Reserve Bank of India has raised its repo rate to 5.50%, marking the first hike since 2023, as inflation projections for FY27 rise to 5.2%. This tightening cycle contrasts with the US market's cautious stance ahead of the FOMC minutes release. Rising US Treasury yields, driven by the auction and geopolitical risk, are pressuring high-multiple growth stocks and cryptocurrencies, creating a challenging macro backdrop for global liquidity.
Macro Policy & Rate Divergence
The Reserve Bank of India has raised its repo rate to 5.50%, marking the first hike since 2023, as inflation projections for FY27 rise to 5.2%. This tightening cycle contrasts with the US market's cautious stance ahead of the FOMC minutes release. Rising US Treasury yields, driven by the auction and geopolitical risk, are pressuring high-multiple growth stocks and cryptocurrencies, creating a challenging macro backdrop for global liquidity.