IBNLive.com: Breaking news from India

ANALYSE THIS: RBI has cut its interest rate by a total of 3.5 percentage points to 5.5 per cent.

ANALYSE THIS: RBI has cut its interest rate by a total of 3.5 percentage points to 5.5 per cent.

Analysis: RBI may need to cap rising yields

The Reserve Bank of India (RBI) may need to step up its market buying of government bonds to head off a sharp spike in yields towards 7 per cent as a result of expected heavy debt issuance in the next few months.

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