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    Govt borrowing to stay elevated; interest rates to be stable: Experts

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    Govt borrowing to stay elevated; interest rates to be stable: Experts

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    “No worries for the market in the next year or so given the RBI’s strong guidance on maintaining accommodative stance, rates are likely to be stable for quite some time,” R Sivakumar, Head Fixed Income, Axis Mutual Fund said in a discussion on CNBC-TV18.

    The government may revise its borrowing programme as it has done in the past, feels R Sivakumar, Head Fixed Income, Axis Mutual Fund.
    “No worries for the market in the next year or so given the RBI’s strong guidance on maintaining accommodative stance, rates are likely to be stable for quite some time,” he said in a discussion on CNBC-TV18.
    Suyash Choudhary, Head-Fixed Income, IDFC Mutual Fund said government borrowing will remain elevated for the next few years.
    “What RBI’s endeavour is that there is a mammoth deficit that needs to be financed via the bond market and the bond market is a vehicle to do that while the RBI endeavours to keep yields stable. So I don’t think it is anyone’s argument that the RBI is trying to engineer a very large fall in bond yields or a rise in bond prices because this is a multiyear phenomenon – the fiscal stress that we are seeing is not just contained to this year but probably for the next couple of years you are going to see elevated level of government borrowing,” Choudhary said.
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