From a high of 7.62% in mid-June, yield on the Indian 10-year bond declined to 7.19% at the end of August. Following its off-cycle repo rate increase of 40 basis points in May, the Reserve Bank of India (RBI) hiked the policy rate by 50 bps each in June and August.
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At the same time, the RBI remains watchful of risks from geopolitics, crude oil prices and global monetary policy developments.