State Borrowing Dampens RBI's Monetary Easing Impact on Indian Bond Market
4 hours agoBusiness
38LENS
1 Sources
TBNthebalanced.news
State Borrowing Dampens RBI's Monetary Easing Impact on Indian Bond Market

The Reserve Bank of India's liquidity injections and rate cuts in 2025 have had a limited impact on the bond market due to heavy state government borrowing. While the RBI aimed to stimulate growth through cheaper credit, bond yields have shown minimal decline, with corporate and state government bonds underperforming. State borrowing plans are identified as the primary factor hindering the effectiveness of the central bank's monetary policy measures.

Political Bias
33%34%33%
Sentiment
45%