Indian Rupee: Gradual tightening path after RBI hike – ING
ING’s Deepali Bhargava notes that the Reserve Bank of India delivered its first rate hike in four years, raising the policy Repo rate to 5.50% and shifting to calibrated tightening. The report highlights upside risks from Oil and a stronger US Dollar for the Indian Rupee, but expects only gradual tightening, with a further 50bp of hikes taking the Repo rate to 6%.
RBI hike and INR policy outlook
"The MPC unanimously voted to raise the policy repo rate by 25bp to 5.50%, marking its first rate hike in four years. It also shifted its policy stance to calibrated tightening, signalling that rate cuts are off the table in the near term. The MPC emphasised that future policy choices would be limited to either a rate hike or a pause, depending on evolving economic conditions and the inflation outlook."
"Much of that assessment will depend on external inflation drivers. Key risks stem from international oil prices, exchange rate dynamics, and global monetary conditions. While we expect Brent crude prices to decline towards US$80/bbl in the fourth quarter, upside risks remain."
"At the same time, further Fed tightening could keep the US dollar stronger for longer, maintaining depreciation pressure on the INR and increasing the risk of imported inflation."
"As a result, barring a significant inflation surprise from persistently elevated oil prices, a stronger-than-expected El Niño impact on food prices, or a sharper INR depreciation, we expect the RBI to continue tightening gradually. Our base case is for a further 50bp of rate hikes, taking the Repo rate to a terminal rate of 6% over the next six months, with policymakers closely monitoring the pass-through of food and energy shocks into core inflation and the emergence of second-round effects."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
TD Synnex to Acquire BlueStar
11:10 AM EDT, 10/07/2026 (MT Newswires) -- TD Synnex (SNX) said Wednesday it agreed to acquire BlueStar, a specialty technology distributor. Financial terms of the transaction were not disclosed. The deal will combine BlueStar's specialized expertise and portfolio with TD Synnex's global reach and resources, expanding opportunities for customers and vendors. TD Synnex and BlueStar will continue operating independently until the transaction closes. Shares of TD Synnex were down more than 2% in Wednesday trading. Price: 272.39, Change: -6.00, Percent Change: -2.15
Dow Jones Top Financial Services Headlines at 11 AM ET: Venture Firm Behind Chip Startup Groq Targets $10 Billion Megafund | How ...
Venture Firm Behind Chip Startup Groq Targets $10 Billion Megafund Winning bets on hot AI startups are vaulting a little-known Dallas firm into a small group of firms raising gigantic funds. ---- How one trend-following fund outperformed rivals by bringing humans back into the decision-making process One trend-following fund has outperformed rivals this year by deciding to take profits. ---- Financial Services Roundup: Market Talk Find insight on Tower, Banco Santander and more in the latest Market Talks covering financial services. ---- Wall Street Bonuses Are Expected to Hit Another High This Year New York reports that the industry is now on pace for $90 billion in profits this year, leading to higher compensation. ---- Fintech Plaid Bets on Credit Scores to Fuel Next Phase of Growth EXCLUSIVE: Plaid is doubling down on its credit-scoring business with new AI models as the company aims to chart its next era of growth with a suite of products beyond its core business. ---- Companies Raise More Than $1 Trillion in Equity Markets, But AI, Bond Yields Sour Mood Markets had been expecting a bumper quarter following an ebullient start to the year crowned by SpaceX's record-breaking IPO. ---- Forbion Raises $2.6 Billion in Boost to European Biotech Industry Dutch haul comes despite European drugmakers and investors warning the region is losing ground. ---- Hackers Use Chinese AI Tool to Hit South Korean Banks, Exposing New Risk The attacks were the latest to highlight the vulnerability of even hardened targets to hackers using freely available artificial-intelligence tools. ---- KKR Strikes Deal to Buy Private-Capital Fund Administrator Gen II Private-capital funds have proliferated in recent years as investors seek to reduce reliance on public markets. ---- NYSE Owner Launches Gold Futures in London The contract began trading Monday alongside new futures for silver, platinum and palladium. ---- Dan Ives Launches Another AI Fund Amid Conflict of Interest Questions A new closed-end fund carrying Dan Ives' name seizes o
French political crisis impacts European bank stocks! Société Générale (SCGLY.US) and Deutsche Bank (DB.US) fall over 5%. JPMorgan says the pullback may offer entry opportunities.
European bank stocks faced another round of sell-off on Wednesday, with Societe Generale and Deutsche Bank shares both dropping by more than 5% at one point.
BUZZ - BKV shares rise due to equipment supply agreement for Texas power project
On October 7, natural gas producer BKV Corp (BKV.N) saw its shares rise by 10.3% to $24.33 after the company signed an equipment supply agreement for a planned gas-fired power generation project in Texas. This project is backed by a cost support agreement with a hyperscale cloud services provider. The supplier will provide approximately 1,200 megawatts of power generation equipment, with deliveries beginning in September 2028. The cost support agreement covers about 90% of the payments BKV is due to make under the equipment supply contract by March 31, 2027. All 11 brokerages have rated the stock "buy" or higher, with a median target price of $35, according to data compiled by LSEG. Including intraday fluctuations, BKV shares are down 10.5% year-to-date. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several languages. Since automated translation may contain inaccuracies or fail to capture intended context, Reuters does not guarantee the accuracy of such translations and provides them solely for readers' convenience. Reuters accepts no liability for any damages or losses arising from the use of automated translation features.)
Crypto prices
More
