Rate cut cycle near turning point. What lies ahead for Indian bonds?
Economic Times 1 hr ago·4 Oct 2026, 7:07 am
The Reserve Bank of India, which has been cutting rates for several meetings, is expected to pause the easing cycle and possibly move toward tightening at its October policy meeting. The shift is being driven by a combination of stronger-than-expected domestic growth, higher crude‑oil prices and the spill‑over of rising US Treasury yields that are keeping inflation pressures alive.
For investors, a tighter stance means bond yields could rise, pushing up borrowing costs for the government and corporates while offering a modest boost to the rupee. Higher yields may also weigh on equity valuations and consumer spending. Market participants should keep an eye on the RBI’s official statement, upcoming inflation numbers, and the trajectory of global sovereign yields, as these will shape the next moves in Indian bond markets.
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- Category: Economy.
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