India’s 10-year government bond yield falls below 7.15% due to lower inflationary pressures and easing core prices, indicating lower inflationary pressure in the future. The annual retail inflation in India rose 5.69% in December, but core inflation was estimated at 3.8%-3.89%, lower than in November. As inflationary pressures ease, the chances of a change in stance of the Reserve Bank of India’s Monetary Policy Committee in February are increasing.
Banks unlikely to reduce deposit rates despite RBI easing
Following the latest repo rate decrease, bankers foresee only slight adjustments to deposit rates. The landscape, characterized by sluggish savings yields and elevated credit-deposit ratios,
December 8, 2025