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RBI rate hike unleashes bond bounty

The Reserve Bank of India announced its first quarter review of monetary policy on 27 July 2010 in which it hiked the repo rate and reverse repo rate to 5.75% and 4.5% respectively. This was the fourth hike in 2010, which were triggered by RBI’s concerns about high inflation, which lurks at around the 10% level. The wide expectation is…

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