Muthoot Finance shares plummeted after the Reserve Bank of India (RBI) announced forthcoming comprehensive regulations for gold-backed loans, triggering a selloff. The new rules include a uniform Loan-to-Value (LTV) cap of 75% and stricter monitoring of gold loans for income generation. Other lenders with gold loan exposure, like Manappuram Finance and IIFL Finance, also experienced declines following the announcement.
US inflation tops 4% for first time in three years, keeping Fed hike in play
US inflation climbed to 4.1% in May, driven by rising energy prices, keeping the Federal Reserve’s interest rate hike plans on the table for September.