RBI's 'calculative risk', Fed bets
- Bond yield jumps to 3%, RBI cancels bond auction The Reserve Bank of India (RBI) has given a pleasant shock to all by keeping the repo-reverse repo rate unchanged for the 11th consecutive time amid strong prospects of interest rate hike. The central bank has decided to keep interest rates stable by taking a calculated risk. RBI Governor Shaktikanta Das said a sustainable and broad-based lending policy was needed to support the economic recovery. In fact, the 7.5 per cent growth forecast for 206-2 is lower than the base effect calculation. The central bank has given a clear signal that it will remain flexible as long as it is needed. Some argue that the Reserve Bank has limited options other than bond auctions. The RBI's tough and tough decision is a big risk and the governor's favorable statement may have affected the bond market but his statement and policy remarks as the head of the central bank of a huge country like India are a reflection of the whole country. "W