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.
Market expects one more rate cut as inflation stays benign
Indian economists and bond market experts expect another quarter percentage point cut in policy rates. This follows the Reserve Bank of India’s recent rate reduction
December 9, 2025