“The RBI’s decision to increase the repo rate by 25 basis points, from 5.25% to 5.50%, marks the first rate hike in nearly four years. For bond investors, the higher rate environment can create attractive opportunities, with better yields available on fresh investments. The move is also a measured step to keep inflation under control, while India’s economic growth remains strong. With the RBI projecting GDP growth at 7.1%, the broader economic outlook continues to remain resilient. We believe attractive yields, growing awareness and easier access can bring more retail investors towards bonds as an important option for regular income and portfolio diversification.”
