What RBI policy means for banks, markets, deposit holders: Key takeaways

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 policy decision does come as a surprise given that the overall inflation projections have not really changed significantly for the year being put at 4.6% in Q2 and 4.8% in H2. There is an adjunct of a neutral stance which probably may not read deeply as a similar stance in the past has not precluded a rate hike in subsequent policies. Yet the call to hike rates should sound good for the savers while industry would have to be prepared to pay more on loans. Moreover, the days of easy money are probably over. 

The risks pointed out by