RBI surprise rate hike triggered panic sell-off ahead of US FOMC meeting. Indices were down around 2.29% – 2.49%. RBI hikes repo rate by 40 bps to 4.40% & CRR by 50 bps.
US FOMC meeting outcome: increase rate by 50 bps & Balance sheet reduction to start from 1st June with $47.5 billion per month and will go up to maximum $95 billion per month in 3 months.
Wall Street recovered sharply post US Fed chairman Jerome Powell press conference, ruling out aggressive rate hike.
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