scorecardresearchRBI Monetary Policy: Market swings between gains and losses after a 50 basis points interest rate hike? Let's decode

RBI Monetary Policy: Market swings between gains and losses after a 50 basis points interest rate hike? Let's decode

Updated: 08 Jun 2022, 03:50 PM IST
TL;DR.
  • When rates rise, investors start looking away from riskier equities and begin to see more value in bonds and other government certificates. 
Sensex was in the red before the announcement on key lending rates and when the RBI governor Shaktikanta Das announced the MPC (monetary policy committee) decisions, the Sensex rose more than 100 points. Photo: Pixabay

Sensex was in the red before the announcement on key lending rates and when the RBI governor Shaktikanta Das announced the MPC (monetary policy committee) decisions, the Sensex rose more than 100 points. Photo: Pixabay