India Bonds Gain Most in a Month on Bets RBI to Resume Rate Cuts
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Indian government bonds rose the most in a month on speculation the central bank will resume interest-rate cuts after holding borrowing costs today.
Governor Duvvuri Subbarao kept the repurchase rate unchanged at 7.25 percent, as predicted by 15 of 25 analysts in a Bloomberg News survey. Ten had forecast a reduction of 25 basis points. Conspicuously absent in the policy report was any reference to the Reserve Bank of India having “little room” to ease policy, a prominent term in recent communication, Roland Randall, a Singapore-based economist at Australia & New Zealand Banking Group Ltd., wrote in a note. The RBI will next review policy on July 30.