Indian bonds unlikely to attract incremental flows: SBI MF's Radhakrishnan

While the RBI's overall policy intent is clearly growth supportive, the shift to neutral stance has been a communication challenge, Radhakrishnan said

Despite the Reserve Bank of India's (RBI) bumper 50-basis points (bps) rate cut, long-term bond yields have risen, limiting the impact of policy easing. Rajeev Radhakrishnan, chief investment officer for fixed income at SBI Mutual Fund, tells Devanshu Singla in an email interview that investors entering at this stage of the (interest rate) cycle should moderate return expectations. Edited Excerpts:

  How do you interpret the RBI’s recent monetary policy statement?

  RBI’s policy actions have clearly been targeted at ensuring transmission of policy cuts into bank lending rates. While the overall policy intent is clearly growth supportive,