Finance
Mr. BillionhairStates Borrowing Like Crazy, RBI in a Tight Spot, Folks!
Listen up, folks! Indian states are borrowing like it’s going out of style! The RBI is in a pickle, can’t lower those interest rates because states are flooding the market with bonds. Investors want more, and the RBI is stuck in a tough spot! They might buy central bonds, but state bonds? Forget about it! It’s a total disaster, folks, and I told you so!
few days ago | Reuters
Quick rundown
1.Indian states' borrowing surge complicates RBI's interest rate efforts.
2.State debt supply rivals sovereign borrowing, impacting yield curves.
3.Investors demand higher returns on central government securities.
4.State borrowings may rise due to revamped rural jobs scheme.
5.RBI expected to purchase central bonds, but no support for state bonds.
