Stock Market Impact: Cook indicated rates will remain unchanged for now but she is prepared to raise them if inflation does not ease, signalling potential upward pressure on interest rates that could dampen equity valuations.
Listed Companies and Sectors: No specific corporate announcements; however, sectors sensitive to borrowing costs such as real estate, utilities, and consumer finance may face higher financing costs if a hike occurs.
Investment Flows: A possible rate increase could attract short‑term capital inflows seeking higher yields, while higher rates may deter some foreign portfolio investment.
Interest Rates, Inflation, and Liquidity: Policy rate currently held in the 3.50%‑3.75% range; Cook warned inflation risks remain tilted higher due to tariffs, oil price spikes after the Iran war (started 28 Feb), chip demand, and construction‑worker wage pressure from AI data‑center expansion. She expects disinflation in coming months but cautions five years of inflation above the 2% target could become entrenched.
Fiscal or Monetary Policy: Emphasized a risk‑management approach, keeping rates steady while monitoring inflation; signaled readiness to act if disinflation is not timely.
