Mumbai: The Indian government's ultra-short-term borrowing costs jumped at a treasury bill auction on Wednesday, with the premium over the benchmark policy rate rising to a four-year high as investors priced in more aggressive monetary policy tightening.
The Reserve Bank of India hiked rates for the first time in nearly four years last week and shifted its stance, signalling more increases, while Governor Sanjay Malhotra on Tuesday said monetary policy cannot be seen as separate from financial stability, prompting traders to ramp up rate hike bets.
