RBI Hikes Rates, Signals No Near-Term Cuts as Markets Reassess

India’s central bank raised the main interest rate by a small amount.

Its governor said a rate cut soon is unlikely, and the next move may be to keep rates steady or raise them again.

Higher rates can make borrowing costlier for people and businesses.

That may put pressure on some shares, including in banking, cars and property.

The stock market fell during the day but later recovered some ground.

The RBI also expects the economy to keep growing and raised its growth forecast.

Analysts said company profits will be important for what happens to shares next.

They said businesses with strong finances may be better able to handle higher borrowing costs.