RBI monetary policy: Calm bond market suggests status quo on rates

The bond market seems to be expecting interest rates to remain unchanged in the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) meeting on Wednesday as the yield on benchmark 10-year paper softened by 5 basis points (bps) to close at 7.83 per cent.

Economists said the panel may wait till the next policy review in August for any decision on rate hike, awaiting data on spread of monsoon.

There are many worrying factors such as oil prices, volatile currency, large-scale selling by foreign portfolio investors, falling reserves and inflationary expectations. The assessment of these may make the language