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RBI's sudden rate hike was already a shock for many but it happened on the first day of the LIC IPO opening made it even more baffling. In an off-cycle meeting, the Reserve Bank of India on Wednesday hiked the repo rate by 40 basis points (bps) to 4.40 per cent with immediate effect. It also hiked the cash reserve ratio (CRR) by 50 basis points to 4.5 per cent. What surprised or shocked key market players was the fact that it coincided with the first day of Life Insurance Corporation of India's Initial Public Offering (IPO). The biggest initial public offering (IPO) in the history of Indian markets, the LIC IPO, was subscribed 67 per cent on Wednesday, the first day of bidding.
Like everything else, this also caught the attention of the Twitterverse and netizens did what they are best at -- churning out relatable memes out of thin air. From comparing the move to SS Rajamouli's blockbuster film Baahubali to connecting it to Shark Tank India, netizens got the meme ball rolling and how! Take a look at funny memes and jokes inspired by RBI's rate hike on LIC IPO day:
Repo rate is the rate at which the central bank lends short-term funds to banks. The RBI has cut the repo rate by 250 basis points since February 2019 to help revive the growth momentum. The Monetary Policy Committee has been on a prolonged accommodative stance to support the growth. The move was taken in order to contain inflation. The ongoing geopolitical tensions are pushing inflation higher in major economies besides the crude oil price also being volatile and above $100 per barrel.
The unscheduled announcement by the central bank surprised the equity markets as it nose-dived right after. Sensex tanked nearly 1,100 points, whereas Nifty over 300 points.
--with agency inputs
