Bloomberg
Traders Bet RBI Hold, Cash Boost to Steepen India Yield Curve
Monday, August 3, 2026
The Reserve Bank of India is expected to maintain current interest rates at its upcoming decision, while banks face a projected large cash surplus. Traders anticipate short-dated bonds will outperform longer-duration debt in this environment. The cash surplus is expected to result from scheduled government expenditures and other cash management operations.
