RBI MPC Decisions Event Study
Analyze the average indexed market path (indexed to 100 on Event Day T0) from T-2 to T+2 trading days for hikes, cuts, and holds.
Computing event study averages...
An Event Study isolates the impact of a specific recurring event type on asset prices. We track the price behavior of the selected asset surrounding all historical RBI Monetary Policy Committee decisions since 2018.
1. Price Indexation: For each individual policy decision, the price path is scaled to 100 on the close of the Event Day (T0). Trading days are represented as T-2 to T+2, excluding market holidays and weekends.
2. Path Aggregation: The thick colored lines plot the arithmetic mean of these indexed paths, grouped by policy decision (Rate Hike, Rate Cut, or Policy Hold).
3. Shaded Confidence Bands: The low-opacity bands represent the ±1 standard deviation range around the mean, demonstrating the volatility and historical dispersion of individual outcomes within each decision group.