01-May-2025
Markets and Finance
 
Bond yields at a 3-Year low. Will interest rates move further down?
30-Apr-2025

In 2025, the Reserve Bank of India (RBI) has, thus far, cut the policy rate by 50 basis points (bps) – 25 bps in February and another 25 bps in April. One basis point equals 0.01%. The policy repo rate currently is 6%. The easing of CPI inflation has nudged the central bank to cut rates and support economic growth. The CPI inflation is well within the RBI’s target of 4% (+/- 2%). The central bank is also confident that inflation will remain in this range over a 12-month due to lower food prices.

News Source:- https://www.financialexpress.com/policy/economy/bond-yields-at-a-3-year-low-will-interest-rates-move-further-down/3826650/?ref=hometop_hp