MARKETS LIVE: RBI hikes repo rate by 25 bps; indices remain higher

Markets continued trading higher after the RBI maintained neutral stance in the second policy decision of FY19. The central bank hiked repo rate by 25 bps to 6.25%. This is the first rate hike in over four years, reverse repo rate adjusts to 6%.

An increasing number of economists expected the Reserve Bank of India (RBI) to raise interest rates on Wednesday, a Reuters poll found, but most still thought the central bank would stay on hold and use this week’s meeting to prepare for an August hike.

Globally,  Asian stocks edged up on Wednesday after tech sector strength lifted Wall Street shares, while concerns about Italy’s debt prompted investors to move into lower-risk government debt elsewhere, pushing US Treasury yields down from recent highs.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 per cent, while Japan's Nikkei edged down 0.1 per cent.