RBI Seen Using Hybrid Playbook to Keep Bond Traders Guessing

India’s central bank may adopt its own version of yield-curve control as it digs deeper into its toolbox to cushion the economy during the coronavirus pandemic, according to a unit of the country’s second-largest private lender.

The Reserve Bank of India may buy debt at irregular intervals to tame spikes in yields as it seeks to accelerate transmission of cuts in policy rates, breaking from the hard yield-control policies followed by the Bank of Japan and Reserve Bank of Australia, A Prasanna and Abhishek Upadhyay, Mumbai-based analysts at ICICI Securities Primary Dealership Ltd., wrote in a report to clients.