JOIN USThe Reserve Bank on Thursday said it would soon launch inflation-indexed bonds (IIBs) that would seek to wean away people from buying gold and provide them with an effective hedge against inflation, following Finance Minister P Chidambaram in Budget announcing the launch of such bonds.
“This will be done next fiscal...we will have our cash and debt management meeting towards the end of this financial year and hopefully, from the first or second month of the next fiscal, we will launch inflation-indexed bonds,” Deputy Governor HR Khan told reporters at a customary post-Budget press conference here.
The central bank, for some time, has been planning to introduce IIBs to wean away investors from gold, who were investing in the yellow metal as a hedge against inflation.
Another Deputy Governor Urjit Patel said “the IIBs would increase choice for savers and the instrument will be particularly attractive for risk-averse savers, who will get assured real returns.”