So far in FY23, RBI has hiked the policy repo rate by 225 basis points to 6.25%, previously seen in February 2019. RBI’s repo rate hikes were warranted given inflationary environment. Over the recent 2 months Indian government bond yields have remained in a defined range, after a significant up move. Banks have been revising their benchmark lending rates such as MCLRs more noticeably in the recent months. Divergence between movements of treasury yields and MCLRs is interesting, reality of our VUCA world.