Economics
Bond Investors Brace for Hawkish RBI After Patel's Surprise
- Government borrowing program, state-debt supply amid concerns
- RBI has shifted toward tighter policy: Capital Economics
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The Reserve Bank of India’s surprise move to raise the interest rate it uses to drain excess funds from lenders is being seen as a sign of things to come.
The commentary accompanying Thursday’s decision by a panel led by RBI Governor Urjit Patel indicates that policy makers are turning increasingly hawkish, according to fixed-income investors. Capital Economics is flagging the possibility of a hike in benchmark rates before the end of 2017, while Nomura Holdings Inc. says risks are skewed toward an increase in 2018.