Indonesia and the Philippines, two nations that run twin deficits like India, have hiked their rates by at least 50 basis points
RBI raised interest rates to the highest in 2 years to tackle inflation pressures in the world's fastest-growing major economy
The yields on the 10-year bond closed at 7.7%, lower than its previous close of 7.8%
Foreign currency reserves are down by $19 billion since the end of March
RBI increased the repo rate by 25 bps to 6.50%
Niranjan Hiranandani, chairman and managing director at Hiranandani Communities, said that the hike would negatively impact buyers' sentiment with the logical result on quantum of sales
July CPI print is likely to be below 4.5% and could even touch 4%, if food prices rise by 1% month-on-month, in line with previous month's trend
The proposed revisions would be issued for public comment by the end of September
The RBI introduced the Banking Ombudsman Scheme in 1995
On MSP hike, RBI said there is a considerable uncertainty and the exact impact would depend on the nature and scale of the government's procurement operations
This was the first time since October 2013 that the central bank has hiked repo at two consecutive policy meetings
The risks pointed out by the RBI still remains the same with the MSP, oil price, demand, HRA factors driving the decision to hike rates
The RBI -- which in June projected inflation of 4.7 percent in the second half -- has a mandate to keep it at the 4 percent midpoint of its target band in the medium term
The fear of an adverse base effect driven rise in June CPI turned out to be pretty much a false alarm
Apart from inflation indicators, the committee will likely take into account several macroeconomic and financial market indicators (eg, oil prices, the INR, FII flows, monsoon trends)
The government's spending plans have already been threatened by setbacks to flagship reforms
Many lenders had increased their lending rates prior to the policy review and after that, indicating a broader direction in which the rates are headed
Investors may move from medium- and long-term debt to short-term debt
Banks have been increasing their lending rates even before the RBI's rate hike this week
HDFC Bank, the largest private sector bank in the country in terms of market capitalization, will from June 7 charge an interest rate of 8.40 per cent for a one-year term