Globally, growth has slowed down largely due to trade tensions between US-China, Brexit woes and fears of an impending slowdown in the Eurozone. This has led to a slew of rate cuts in the developed markets with a majority of central banks staying committed to an accommodative policy stance. In July 2019, the US Federal Reserve reduced the policy rate by 25bps to 2.00-2.25per cent. Though the Fed has not explicitly mentioned that it is on a rate cutting path, market participants believe that there is another rate cut of 25bps on the anvil which may be announced in the September policy. This has led to an inversion of the yield curve for the first time since 2007. An inverted yield curve means that interest rates have reversed with short-term bonds paying more than long-term bonds. It’s generally regarded as a warning sign for the economy and the markets. A recession, if it comes, usually appears many months after a yield curve inversion. The global growth slowdown has impacted the emerging markets as well. The central banks are accommodative and ready to reduce rates, if the situation warrants.