“This may also prompt the Reserve Bank of India (RBI) to reassess its policy stance during the next meeting, believed analysts. “The rate hike by Fed was on the expected lines due to high inflation risk coupled with geopolitical tensions. The US treasury yields had shown an immediate spike after the FOMC announcement but stabilized thereafter. The current rate hike along with anticipated monetary tightening indicates the Fed’s stance of controlling the high inflation prevalent in the US. Asian markets have reacted positively on account of Russia-Ukraine situation entering the resolution phase which was further supported by stabilisation of crude prices. Taking this into account, the RBI may reassess its accommodative stance in the next month’s policy meeting”
