Fixed income investors in 2024 are poised for potential rate cuts, particularly as global central banks, including the US Fed, signal a softer stance. The RBI remains vigilant on inflation, but falling core inflation could reduce the inflation risk premium on bond yields. Pankaj Pathak from Quantum AMC suggests that the lower inflation risk premium may bring down bond yields, even without an official rate cut. This trend could impact bank FD rates, with a potential downward shift. However, the RBI’s commitment to inflation control may keep FD rates stable for a while before any marginal decrease.
Fixed Income Outlook 2024: Anticipating Rate Cuts and Impact on Bond Yields
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2024/01/01113028/fixed_deposits2.jpg)