According to Icra Ratings, the weighted average cut-off or pricing of bonds eased by 4 bps to 7.67 per cent even as the supply eased a tad after rising for four weeks when states borrowed more than the estimated amount.
Retail inflation based on the Consumer Price Index (CPI) was at 7 per cent in August 2022.
The Reserve Bank of India raised rates by 90 basis points in two moves to temper price gains and is scheduled to hold its next review from August 2-4.
With liquidity remaining in substantial surplus, we expect the banking system to rapidly transmit additional rate cuts, thereby supporting the case for front-loading of policy easing
In an interview to CNBC-TV18, former finance secretary S Narayan and Aditi Nayar, economist at ICRA spoke about their views on the spate of announcements from the finance minister.