Monetary policy: Equity investors expect RBI to remain hawkish, hike rate

The S&P BSE Sensex Index has tumbled 9.6% since reaching a record in August

Equity investors in India have been increasing the amount of cash they’re holding ahead of the central bank’s interest-rate decision later Friday.

That’s because they’re expecting an increase in borrowing costs and want to have plenty of money to deploy when it’s time to invest again. They’re also looking for the Reserve Bank of India’s comments on the outlook for inflation and economic expansion as soaring oil prices and a weakened rupee have triggered concerns over corporate-earnings growth.

“We’ve raised cash in