Bagla: Inflation Unlikely To Come Down

The transcript discusses the Reserve Bank of India's (RBI) unexpected decision not to hike interest rates, which led to a short covering rally. It explores inflation expectations, government bond supply, and the potential impact of the Federal Reserve's tightening policy. The discussion also covers the RBI's liquidity stance, the influence of foreign funds on Indian bonds, and the need for higher bond yields. The challenges of RBI's bond buying strategy amidst tight liquidity are highlighted.

What is the expected range for Indian bond yields in the near future?

In what ways might the RBI's view on inflation be perceived as being behind the curve?

What challenges does the RBI face in balancing bond buying and liquidity?