📌 In a surprise( but was expected in sometime) RBI Hiked Key Benchmark Interest Rate The Repo Rate by 0.40%.
📌 It also Hiked CRR (Cash Reserve Ratio- Percent of Banks total deposit that it needs to maintain as Liquid Cash), by 0.50%. Now banks will have lesser money to lend.
RBI took these steps to contain spiraling Inflationary pressure. Banks will be under pressure and their margins will be squeezed.
📍 However these are Short term Turmoil in Equity Markets and Markets have to go through all this. It will absorb this in due course of time, as this is not something which is new and has happened in past on several occasions.
Wealth Creation Journey is a roller coaster ride, and every market fall serves as an opportunity.