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Another Hawkish RBI Hold

RBI

The RBI has kept interest rates on hold at 6.50% as widely expected. The RBI has also kept its withdrawal of accommodation bias as well, which was more uncertain. Our sense had been this could be shifted back to neutral, but Governor Das has stated that bringing inflation back to 4% in a durable fashion is the key RBI mandate.

  • 10yr bond yields have edged up around 3bps to 7.07% post the outcome. USD/INR is relatively steady, while local equities are offered after the hawkish hold.

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