Economy News

India to confidently keep the borrowing costs below 6% for 2021-22

As per the sources, the Indian government is confident that it can collect funds for its giant borrowing program below 6%.

The Central Bank RBI, has assured to provide liquidity as per the sources. Also, the holding policy interest rates are remaining the same at record lows on February 5.

The RBI governor Shaktikanta Das has assured the investors that the bearing on liquidity remained accommodative.

Further, he has assured that the government’s borrowing program will be smoothly managed throughout the FY 2021-22.

This is a total 12.06 trillion borrowing program initiated by the government of India. The program will start from April this year.

Also, two officials have stated that the RBI has assured them the yields would be carried out comfortably. Further, they also don’t expect it to top beyond 5.9%.

Moreover, two sources have mentioned that the long-term borrowing costs are expected to be in the range of 5.9% – 5.9%.

Apart from this, the bond yields have already increased on last Friday regardless of RBI pledge. Further, most of the bonds were retreated on Friday as well.

The RBI has only sold 90 billion rupees bonds against 310 rupees billion.

There are also underwriters available for auction buying of 88.1 billion rupees worth of the paper.

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