RBI's Hawkish Tone on Inflation Weighs on Indian Bonds

Minutes from the Reserve Bank of India's latest policy meeting revealed a surprisingly hawkish tone, with policymakers growing cautious on inflation and Governor Malhotra noting prices are beginning to rise. This led to Indian government bonds coming under heavy selling pressure, with the benchmark 2036 bond yield rising to 6.8382%. Elevated Brent crude prices near $92 a barrel are amplifying these inflation concerns, posing risks to India's rupee and current account. This regional central bank's hawkish pivot, driven by global oil prices, could contribute to a challenging environment for gold and put pressure on the Pakistani Rupee.

بحوالہ / Source: www.brecorder.com