India's Central Bank Is Set to Keep Bond Market Party Going
- Rates likely to be on hold, but MPC could flag inflation risks
- Foreigners await RBI word on increase in bond holdings
Photographer: Dhiraj Singh/Bloomberg
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India’s government kicked off a party in the bond market last week. And the central bank won’t want to spoil that.
While Governor Urjit Patel and his monetary policy committee have turned more hawkish on inflation recently, they are set to hold the benchmark interest rate at 6 percent on Thursday, according to all 26 economists in a Bloomberg survey. That should help extend a rally in the bond market, triggered last week when the government cut its first-half borrowing plans.