Change in debt strategy

Investors may move from medium- and long-term debt to short-term debt

One of the most interesting lines in the Monetary Policy Statement is in paragraph 20: “The Monetary Policy Committee (MPC) notes that domestic economic activity has exhibited sustained revival in recent quarters and the output gap has almost closed.” The output gap is the difference between actual economic output and potential output. 

According to the latest estimates, the Gross Domestic Product (GDP) grew in Q4 (January - March 2018) at 7.7 per cent, pulling 2017-18 FY growth to 6.7 per cent. Q4 saw the fastest growth rate in seven quarters. It was a substantial improvement on 7 per cent in