Indian bond yield opened flat on August 6 ahead of Reserve Bank of India's (RBI) monetary policy announcement, with the 10-year benchmark yield at 6.331 percent compared to 6.332 percent at previous close.
The RBI's MPC will decide on interest rates at 10 AM today where it is widely expected to maintain the status quo. On July 29, Moneycontrol poll of economists and treasury heads across banks and fund managers, expect Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is likely to maintain status quo on interest rates. A few economists and banking experts believe the central bank may cut rates by 25 basis points (bps) at a time of a sharp easing of inflation. A pause could allow the RBI to assess the monsoon's impact on inflation and also the impact of past rate cuts on the growth trajectory, experts have said.
So far, the central bank has reduced repo or the benchmark rate by 100 basis points (bps) since February to aid growth, with 25 bps each in February and April respectively, and 50 bps in the June policy.
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