RBI is easing but India long term rates keep climbing — what’s driving the break from policy

Published on 24 April 2026

Repo cuts haven’t convinced markets about the future

Even as the RBI has cut the repo rate by 125 basis points in the past year, India’s long-term interest rates have continued rising for months. The gap between policy easing and market pricing is drawing attention, hinting that expectations around inflation, growth risks, and fiscal dynamics may be outweighing the central bank’s near-term stance.

Long-term rates have risen despite 125 bps repo cuts
Markets appear focused on future inflation and risk outlook
Fiscal and growth expectations may be pushing bond yields up
The policy rate and long-end pricing are diverging

#inflation #interest rates #bond yields #bond market #rbi

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RBI is easing but India long term rates keep climbing — what’s driving the break from policy

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