Public
Provident Fund Rate Cut: Positive for
Bonds and Bond Funds..!
The central government has cut rates on
Public Provident Fund (PPF) from 8.7% to 8.1% & Kisan Vikas Patra from
8.7%to 7.8%.
The sharp cut in PPF rates will pull down
government bond yields sharply as it is a signal for banks to drop deposit and
lending rates as well as a signal on the government’s confidence on keeping
down inflation expectations.
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