Bond market range-bound; another rate hike & potential for a pause to support it: Neeraj Gambhir

The Indian financial system has not decoupled from the rest of the world, though it has previously felt a lesser impact from such events as the US and Europe, according to Neeraj Gambhir of Axis Bank. Inflation in India has so far failed to abate, however, and could encourage RBI to adopt a policy of increasing interest rates from an expected 25 basis points in April. Bond yields should be “well supported” as a result of expected rate hikes in the country, Gambhir said.