A rate hike will certainly come, but I think the market was interpreting imminent action on rates as a sign of fear from the government since raising rate is something the government is extremely loath to do given the effect it could have on hot money inflows. A hike this weekend would have sent the message "inflation is out of control and we have to do EVERYTHING possible to get in front of it, hot money coming in or not".
A hike before the end of the year is something the market can certainly handle, though, as well as 2-3 more possible hikes next year along with adjustments to the RRR and further downward adjustments to loan window guidance, imo.
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