This could be a possibility. The official data showed that showed inflation, as measured by the consumer price index rose an annual 6.9% in July, higher than the upwardly revised 6.2% in June. This creates a dilemma for policymakers who have vowed to keep their easing bias intact for as long as it is necessary to revive economic growth.
The prospect of prolonged rate pause could affect debt and gilt funds this year. It could possibly stall the fervent rally we have been witnessing in the bonds.
This could be a possibility. The official data showed that showed inflation, as measured by the consumer price index rose an annual 6.9% in July, higher than the upwardly revised 6.2% in June. This creates a dilemma for policymakers who have vowed to keep their easing bias intact for as long as it is necessary to revive economic growth.
The prospect of prolonged rate pause could affect debt and gilt funds this year. It could possibly stall the fervent rally we have been witnessing in the bonds.