A majority of the 13 respondents (that is, 77 percent) in a BloombergQuint poll expect the RBI to reduce the policy rate by 25 basis points to 6 percent. A basis point is one hundredth of a percentage point. Only one respondent expects the RBI to cut the repo rate by 50 basis points, while the remaining 15 percent think the central bank will maintain a status quo
How Markets Reacted?
Bank Nifty Futures lost closely 600 points in just 2 minutes post the announcement of No Rate Cut and hits the bottom as market participants perceived it as a negative sentiment.
However Negative sentiment lasted only for just 2 minutes and recovered most of the losses in the next trading session.