RBI may soon launch CPI-linked bonds too

The Reserve Bank of India may switch the indexing of inflation-linked bonds to the consumer price index ( CPI) if this measure stabilises, the central bank’s executive director R. Gandhi said on Monday.

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The RBI will sell Rs 1000 crore-2000 crore of inflation-linked bonds on June 4, kickstarting monthly sales of the new type of debt, but for now plans to link the debt to the wholesale price index (WPI).

The country’s annual consumer price inflation slowed for the second straight month in April to 9.39 per cent.

Reuters