Finance
Sock JohnsonRBI to unleash ₹5 trillion in bond blitz to tackle yields
Ladies and gentlemen, gather 'round! The Reserve Bank of India is ready to rumble, planning to unleash a jaw-dropping ₹5 trillion in bond purchases by March 2027! They've cut rates like a pro, but yields are still flexing hard! With ₹14.5 trillion already in the ring, corporate bonds are out, and bank loans are in! A trade deal with the US could shake things up! Get ready for the financial smackdown!
few days ago | Bloomberg
Quick rundown
1.India's central bank faces transmission trouble with bond yields.
2.RBI expected to buy up to ₹5 trillion in bonds by March 2027.
3.Despite rate cuts, only 10% of reductions have affected bond yields.
4.RBI's forex operations to support the rupee have drained liquidity.
5.A potential US trade deal could ease growth concerns and bond purchases.
