The RBI slightly cut its GDP forecast for the year while maintaining inflation outlook.
Indian stock markets made a sharp recovery after Reserve Bank of India announced its monetary policy decision with Sensex ending up over 1,000 points at 57,426. Analysts said that market is drawing comfort from expectations that the RBI may be nearing the end of the rate hike cycle in India. The RBI raised its benchmark repo rate by 50 basis points today, the fourth straight increase, as policymakers extended their battle to tame stubbornly high inflation and analysts said further tightening is on the cards. The RBI has now raised rates by a total 190 basis points since its first unscheduled mid-meeting hike in May.