Monetary policy: Rising yields a worry and RBI should act, say bond dealers

Rise in interest rates could hit corporate earnings, hinder economic recovery

Topics
Reserve Bank of India | monetary policy | Bond Yields

Anup Roy & Krishna Kant  |  Mumbai 

The post-Budget rise in bond yields could hinder the fledgling growth impulses, and the central bank may have to once again assure the market that yields would be kept under check by providing ample support, say experts. Much of those assurances can be expected on Friday, when the Monetary Policy Committee (MPC) announces its decision on policy rates, which are likely to be on hold for an extended period.

The bond yields have moved up at least 15 basis points after the Budget, closing at 6.10 per cent on Wednesday. The mood in the market has soured after the government said it would borrow ...

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First Published: Thu, February 04 2021. 06:10 IST
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