Stock market analysts today termed the RBI decision to hike policy rates by 0.25 per cent as in line with expectations and said they expect another hike in March review of the monetary policy.
"The 25 basis points hike in key policy rates was on-the -expected-lines. There was a fear in market that RBI may raise rates by up to 0.50 per cent. The hike was welcomed by all," Karvy Stock Broking VP Ambareesh Baliga said.
He, however, added that a spurt in the benchmark Sensex minutes after the RBI announced the rate hike was just a knee -jerk reaction.
The benchmark Sensex on the Bombay Stock Exchange climbed nearly 190 points to an intraday peak of 19,340.99.
Experts also said that with the inflation, particularly the food inflation, being at high levels the Reserve Bank of India (RBI) may opt for another 25 basis points hike in the March policy meeting.
