The steepening yield curve denotes how markets are always way ahead of central banks in anticipating future inflation. The steepening yield curve denotes how markets are always way ahead of central banks in anticipating future inflation. But does the bond yield curve hold clues on when RBI will hike interest rates? Put this in the current period and the steepening of the yield curve portends a rate hike around June 2018 and beyond. From an accommodative stance to bringing the liquidity to neutral, RBI’s interventions have also played with the yield curve this time.

Source: Mint December 05, 2017 02:37 UTC