With the growth-inflation dynamics opening up policy space to support growth, the MPC had reduced the policy repo rate by 25 bps to 6.25 per cent in February 2025 and by another 25 bps to 6.00 per cent in April 2025
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Prakash Bharti
Government Securities (G-Secs) yields rose 3-4 basis points on Friday as possibility of the monetary policy committee (MPC) hitting the pause button increased amid fourth quarter (Q4FY25) GDP growth rising to 7.4 per cent from 6.4 per cent in the preceding quarter.
Yield of the 10-year benchmark G-Sec (6.79% GS2034) rose 4 basis points to close at 6.29 per cent against previous close of 6.25 per cent.
The (growth) numbers lower the case for a 50 bps rate cut in the MPC’s June meeting (as expected by a segment of the market), said Nuvama Wealth Management.
With the growth-inflation dynamics opening up policy space to support growth, the MPC had reduced the policy repo rate by 25 bps to 6.25 per cent in February 2025 and by another 25 bps to 6.00 per cent in April 2025.
Published on May 30, 2025
