RBI cautious about raising foreign cap on rupee bond holdings

Mumbai

WHILE India's central bank has good reasons to raise the cap on global funds' rupee bond holdings, one glance at Asian currency markets explains why it probably won't.

Schroder Investment Management Ltd says raising the US$30 billion limit on sovereign debt holdings will help central bank governor Raghuram Rajan achieve a goal of transmitting his three benchmark interest rate cuts to the real economy.