RBI MPC and its impact on Fixed-Income investors' strategy.
by Mr. Vishal Goenka, Co-Founder of IndiaBonds.com
“A hawkish Deep rate cut by RBI : Front loading of rate cuts by RBI addresses
the need to spur growth as short end rates come down aggressively which in turn
will assist corporate borrowing through capital markets for the short end. The
growth expectations remained at 6.5% for FY26 and inflation expectations
lowered to 3.7%.
However we see a large curve steepening as long end rates remain
relatively unchanged with RBI stance changing to neutral from accommodative.
This implies that further room to cut rates remain limited and data dependent.
A balanced policy encouraging growth. Fixed deposit rates to come down
sharply as banks transmit this rate cut. Investors should look at 2-3y
corporate bonds for their portfolio as they continue to offer good spreads over
government and FD rates and interest rates will come down more gradually for
corporate bonds.”
About IndiaBonds https://www.indiabonds.com/ -
Launched in 2021, IndiaBonds is a
SEBI-registered leading Online Bond Platform Provider. It provides access to
investors in the fixed-income market in a low-cost, transparent, and
easy-to-use manner.
At the helm of this bondtech company
are industry veterans - Vishal Goenka, Co-Founder; and Aditi Mittal, Co-Founder
& Director. This core team is committed to pioneering the digital
revolution in the corporate bond market in India.
IndiaBonds provides a wholesome
solution to bond investing to its customers; and enable them to unlock the
value of the fixed-income asset class. The experienced team assists investors
with access to a wide choice of bond investment opportunities that provide
stability, generate predictable income, and meet their investment
objectives. Within the Online Bond Platform Providers community,
IndiaBonds is recognized as a revolutionizing fintech start-up owing to some of
its ground-breaking innovations in the fixed-income industry.
In 2022, it announced the launch of
its strategic tool, the Bond Yield Calculator, which aids investors by
simplifying the complexities of calculating corporate bond prices and
yield.
In 2021, it launched a comprehensive
Bond Directory for the general public to have detailed information on all
INR-denominated bonds outstanding in India.
