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RBI Policy

4 Dec 2020

Bond shorts will be the trade of 2021 – RBI policy review December 2020

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In normal markets, RBI hawkishness on inflation would have taken the 10-year government bond yield higher by a minimum of 25bps. RBI has revised its inflation forecast upwards and believes that price pressures are becoming broadbased. On top of higher inflation forecast, economic growth numbers too have been revised higher indication a post covid economic recovery.

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Arjun Parthasarathy
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