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Record foreign inflows may influence upcoming RBI interest rate decision

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Massive foreign capital inflows into India's bond market are influencing the Reserve Bank of India's monetary policy considerations. These inflows, totaling $133 billion since a key index inclusion was announced, have strengthened the rupee and boosted liquidity. The RBI's upcoming rate-setting meeting will factor in these inflows alongside domestic inflation trends. This situation creates a complex environment for policymakers balancing currency stability with price control.

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