The RBI has raised the repo rate by 25 bps. After the hike, the repo rate now stands at 8.25%. The decision by the RBI has supposedly been influenced by the higher inflation numbers prevailing. It has also indicated that it would continue to keep its ‘anti-inflationary’ stance.
Markets have dipped in the wake of this news being arrived. Banking stocks have seen the dips from day highs. The Nifty has shed its gains and is almost flat.