Bond markets make it tough for banks to pass on rate cuts to you
Monday, 1 September 2025 () Despite RBI's rate cuts, loan rates haven't significantly decreased due to rising bond yields. This divergence is fueled by long-term inflation expectations, the closing of a key liquidity channel, and anticipated marginal rate cuts. Market players worry about potential revenue losses from GST cuts and increased government borrowing, further impacting bond yields.
In a dramatic showdown, President Trump demands urgent interest rate cuts to stimulate the struggling economy — but the Federal Reserve stands firm, leaving rates unchanged. This escalating conflict..
The bond market is aggressively pricing in a Federal Reserve easing cycle that would see two interest rate cuts by the end of this year, pushing the Fed Funds... Upworthy