RBI unlikely to vote in favour of overseas sovereign bond in Aug 16 meet

The overseas sovereign bond issuance, therefore, will lead to 'feedback process' getting further entrenched in the domestic debt market, 'and this may weaken monetary policy transmission'

The Reserve Bank of India (RBI) is unlikely to vote in favour of an overseas dollar sovereign bond in its meeting with the government on August 16. 

The RBI, according to sources, fear that signals by overseas bonds would end up disrupting local bonds, which is tightly in control of the RBI, with the central bank being the money manager of the government. However, the overseas bonds and local bonds cannot be on different pages for long and that would significantly erode the freedom of the RBI to manage interest rates in the economy. 

Even as RBI Governor Shaktikanta Das