Economy· August 17, 2026 at 06:28 a.m.
India's Central Bank Rate Hike Pushes Yields Higher, Stocks Lower
Key takeaways
- RBI raised key interest rate by 50 basis points
- Bond yields rose following the RBI decision
- Sensex fell by 1.4% due to the rate hike
The Reserve Bank of India (RBI) raised its key interest rate by 50 basis points to 4.4%, marking the fourth consecutive increase since May. This move, aimed at curbing inflation, has led to a rise in bond yields and a decline in stock market indices.
