Banks stocks rise after RBI hikes policy rates

7 Dec 2022 , 10:27 AM

The Nifty Bank index was up 0.38% at 43,303.30. Meanwhile, the Nifty 50 index was up 0.10% at 18,661.30. AU Small Finance Bank (up 2.42%), Punjab National Bank (up 0.90%), ICICI Bank (up 0.87%), Bandhan Bank (up 0.67%), Axis Bank (up 0.42%), IDFC First Bank (up 0.41%), SBI (up 0.39%), HDFC Bank (up 0.38%), Bank of Baroda (up 0.34%) and Federal Bank (up 0.04%) climbed. Indusind Bank (down 0.33%) and Kotak Mahindra Bank (down 0.83%) declined. RBI governor Shaktikanta Das announced that the central bank has hiked lending rate by 35 basis points as inflation has started showing signs of easing and economic growth tapering. Standing Deposit Facility rate and Marginal Standing Facility Rate were also increased by 35 basis points each to 6% and 6.5%. Das said the MPC voted 4-2 to remain focused on withdrawal of accommodation so that inflation remains within the target going forward while supporting growth. On balance, MPC was of the view that further calibrated action was warranted to keep inflation expectation anchored, break core inflation persistence and contain second round effects. RBI expects inflation to be above 4% in the next 12 months. The GDP growth forecast for October-December 2022 is lowered to 4.4%. It is lowered to 4.2% for January-March 2023 period. Powered by Capital Market – Live News