Foreign investors continued to offload Indian government bonds in June, albeit at a slower pace compared to the previous two months, influenced by the RBI’s policy shift and global risk aversion. Despite inflows since June 2024, factors like rising oil prices, geopolitical tensions, and a weakening rupee contributed to the outflows.
Will RBI announce steep rate hikes? Nomura sees up to 50 bps increase by Dec, dismisses 125 bps hike fears
Nomura expects the RBI to pursue a limited tightening cycle, with a possible 50 bps rate hike by December, as food and energy pressures rise