Interest Rate Hike

In an event-heavy week ahead, stock markets' movement would highly depend on macroeconomic data announcements, global trends, RBI's interest rate decision and trading activity of foreign investors, analysts said. India's industrial production data for October 2025 will be released on December 1, an official statement said on Friday. Moreover, the November automobile sales data on Monday would also drive sentiments in the markets. "This week features a heavy data calendar that could influence volatility. Domestic focus will be on monthly auto sales, followed by the release of HSBC manufacturing, services, and composite PMI readings. The most crucial event will be the RBI's monetary policy on December 5, where commentary on inflation, growth, and the rate-cut outlook will be closely tracked," Ajit Mishra SVP, Research, Religare Broking Ltd, said. India's economy grew at a higher-than-expected 8.2 per cent - the fastest pace in six quarters - in July-September, as front-loading of ..

Upon winning the race, Takaichi made clear the government will take the lead in setting fiscal and monetary policy - and that her priority would be to reflate demand

RBI's interest rate decision, macroeconomic data announcements and global trends are the key factors that would dictate the momentum in the equity market this week, analysts said. Moreover, trading activity of Foreign Institutional Investors (FIIs) and developments on the tariffs front would also guide investors' sentiment, experts noted. "Looking ahead, all eyes will be on the outcome of the RBI's Monetary Policy Committee (MPC) meeting scheduled for June 6. Additionally, with the new month beginning, participants will track high-frequency data including auto sales numbers and other economic indicators. Updates on the progress of monsoon and the trend in FII flows will also be closely monitored," Ajit Mishra SVP, Research, Religare Broking Ltd, said. Globally, developments in the US bond market and any updates regarding the ongoing trade negotiations will continue to influence investor sentiment, he added. The Indian economy expanded at a faster pace than expected in the last ..

The hike is part of the BOJ's plan to gradually increase rates to a neutral level of around 1% to sustain economic stability

US inflation probably worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much this year. On Wednesday the Labour Department is expected to report that in December the consumer price index rose 2.8% from a year ago, according to economists surveyed by FactSet, up from a 2.7% yearly increase in November. It would be the third straight rise, after inflation fell to a 3 1/2 year low of 2.4% in September. The uptick could fuel ongoing concerns among many economists and in financial markets that inflation has gotten stuck above the Fed's 2% target. Such concerns have sent interest rates on Treasury securities higher, which has also pushed up borrowing costs for mortgages, cars, and credit cards, even as the Fed has cut its key rate. Last Friday's unexpectedly strong jobs report caused stock and bond prices to plunge on fears that a healthy economy could keep inflation

Secured Overnight Rupee Rate (SORR), will be developed with the support of Financial Benchmarks India Limited (FBIL), which has been requested to take the proposal forward

Markets regulator Sebi has proposed allowing Real Estate Investment Trusts (REITs), Small and Medium REITs (SM REITs) and Infrastructure Investment Trusts (InvITs) to use interest rate derivatives for hedging risk. Also, the regulator has suggested approving locked-in units for REITs and InvITs to be transferred among sponsors and their groups, similar to rules for promoters in listed companies, to help sponsors manage their holdings without compromising "skin in the game". Additionally, Sebi has suggested permitting fixed deposits to be considered as cash equivalents when calculating leverage for REITs and InvITs, clarifying credit rating requirements for REIT and InvIT borrowings, and setting a timeline for filling vacancies on their boards and expanding the asset base for REITs and SM REITs. The regulator has also proposed to permit REITs to invest in liquid mutual funds. It has suggested measures to facilitate ease of doing business for REITs and InvITs, along with investors' .

'The economy is going through a transition; it's slowly kind of bending under the weight of the high interest rates,' said Brian Bethune, an economics professor at Boston College

The flat-rate tax system helps lower the overall burden for high-income earners, who tend to earn more through investments

The BOJ's plan to keep raising rates comes at a time when many other central banks are beginning to ease policy

The move was in line with the rupee's recent underperformance as the currency has failed to gain from the dollar's broad slump

Bangladesh Bank's new governor, Ahsan H. Mansur, appointed just a week ago, also said that he would raise interest rates further to 10 per cent or more in the coming months

Whether Monday's wild gyrations mark the final bang of a global selloff that started to build last week or signal the beginning of a protracted slump is impossible to know

The bank has indicated that it will grow its advances slower than its deposits to bring down its elevated credit-deposit ratio

Analysts say the rate-setting council will leave a decision on lower rates for the September meeting, after an initial quarter-percentage point cut at the June 6 meeting

Massive interest rate differentials between the U.S. and Japan have been weighing the yen down, putting monetary policy at the centre of the currency's woes

ECB cut rates in early June but made no commitment about any further moves, arguing inflation was still too high

On Fixed Deposits, Unity Bank continues to offer an interest rate of 9.50% p.a. to senior citizens

Any hopes the governing Conservative Party may have of the Bank of England cutting its main interest rate from a 16-year high of 5.25 per cent Thursday are expected to be dashed even though inflation in the UK has fallen to its target rate for the first time in nearly three years. Official figures on Wednesday showed that inflation, as measured by the consumer prices index, fell to 2 per cent in the year to May from 2.3 per cent the month before, with food prices providing the biggest downward contribution. That's the first time since July 2021 that inflation has been at the bank's target. Despite the welcome decline, some policymakers on the bank's Monetary Policy Committee appear to be still concerned over the scale of price increases in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates are cut too soon. That is why an interest rate cut tomorrow is still very unlikely, said Luke Bartholomew, deputy chief ..

With near-8 per cent growth, the fastest among major world economies, and above-trend inflation there is also little urgency for the RBI to begin cutting rates unless concerns emerge about a slowdown