RBI tightens cash as ₹25,000cr sale pushes India's 10-year yield
Business
India's 10-year bond yield just hit a three-year high, climbing past 7.35% on Monday.
This happened after the Reserve Bank of India (RBI) decided to tighten up cash in the system, announcing a ₹25,000 crore bond sale for Tuesday and making banks maintain 99% of their daily cash reserve requirement from October 16, up from 90%.
RBI raises rates, supports rupee
The RBI is trying to keep inflation in check and steady the markets after raising its key interest rate for the first time in nearly four years.
It's also letting oil companies buy dollars straight from the central bank to help out the rupee.
But with global oil prices staying high and retail inflation expected to rise, India's economy is feeling some pressure right now.