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Bond markets make it tough for banks to pass on rate cuts to you

IndiaTimes 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.
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