Indranil Pan, economist at IDFC Bank said that fading inflation risks will offer RBI room to provide greater flexibility to adjust rates either way depending on what’s needed.
Yield on 10-year sovereign bonds fell 12 basis points to 7.41 percent on Wednesday, the lowest since April, after Shaktikanta Das was appointed as RBI’s governor.
In currency markets, the rupee is likely to track a rise in emerging market peers that gained on some positive developments in the U.S.-China trade talks.
