Citigroup anticipates a continued rally in Indian bonds, driven by deeper interest rate cuts by the Reserve Bank of India, potentially reaching 5%. This diverges from the US Federal Reserve’s stance, weakening the traditional link between Indian bonds and US Treasuries. Aberdeen Investments echoes this view, predicting further rate cuts amid easing inflation and potentially lower oil prices.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets