Market News
RBI MPC meets amid inflation fears; rate hike unlikely now
Published 2026-06-04 · Bazaar Watch Research
- RBI's Monetary Policy Committee began its three-day meeting on June 3, with the decision expected on June 5.
- The central bank had previously cut the repo rate by 125 basis points starting February 2025, then held rates steady.
- Rising crude oil prices and geopolitical tensions in West Asia are fueling inflation concerns and policy uncertainty.
- The Indian rupee recently showed significant volatility, weakening to nearly 97 against the US dollar.
- Rate-sensitive sectors like banking, auto, and real estate could face selling pressure if rates increase.
- Bond yields would likely rise with a rate hike, potentially impacting fixed-income investments.
- Closely track RBI's commentary on inflation and global events for future policy signals.
- Review your portfolio's exposure to rate-sensitive sectors and consider diversification strategies.
