RBI needs to ramp up bond purchases to cool yields, funds say

RBI will need to pump significantly more liquidity into the banking system, as four interest-rate cuts and record debt purchases have yet to ease elevated yields, market participants said.The Reserve Bank of India is expected to buy as much as 5 trillion rupees ($55 billion) of bonds between now and the end of March 2027, according to Aditya Birla Sun Life AMC Ltd. Nomura Holdings Inc. estimates purchases of about 2.5 trillion rupees in the year starting April 1, while PGIM India Asset Management Ltd. expe ...