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The Economic Times

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The yield disconnect: why repo rate cuts arent lowering borrowing costs

Indias bond market is defying monetary policy easing, with benchmark yields staying elevated despite a 125bps repo rate cut. Structural liquidity tightness, weak deposit growth, and limited demand for G-Secs are driving this disconnect. The RBIs proactive liquidity measures aim to ease funding stress as banks face margin pressures.

18 Feb 2026 10:42 am