Bonds Plunge as Indian Policy Makers Unexpectedly Hold Key Rate
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Indian sovereign bond yields climbed the most in more than three years after policy makers surprisingly kept interest rates unchanged ahead of a probable increase in U.S. borrowing costs this month.
The monetary policy committee led by Reserve Bank of India Governor Urjit Patel left the benchmark repurchase rate at 6.25 percent, according to a central bank statement in Mumbai on Wednesday. The outcome was predicted by only eight of 44 economists in a Bloomberg survey, while 31 expected a cut to 6 percent and five saw a reduction to 5.75 percent.