India’s Bonds Decline as RBI Says Inflation ‘Fairly Stubborn’
This article is for subscribers only.
India’s 10-year bonds dropped for a second day after Reserve Bank of India Governor Duvvuri Subbarao said inflation has been “fairly stubborn” and remains above the central bank’s comfort level.
A rate of “4 to 6 percent is the short-term comfort range” for inflation, Subbarao said yesterday in remarks at New York University’s Stern School of Business. India’s benchmark wholesale-price inflation accelerated to a 13-month high of 9.78 percent in August. The central bank has boosted borrowing costs six times this year, lifting the repurchase rate to 8.25 percent.