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But it did so in a face-saving way that attracted little attention outside India — raising the borrowing cost for commercial banks that are especially heavy borrowers from the central bank.
That would lower its borrowing cost.
The credit rating and borrowing cost impact could be severe.
And set against this is the risk that the UK's low borrowing cost might rise.
And at the same time, they lowered the borrowing cost to our taxpayers.
Last year's spring borrowing cost almost $250 million in interest payments, the Comptroller's office said.
Thus, the true borrowing cost would be anything from zero to 2percentt.
One pays an interest rate of 4% on three-year deposits more than five times the government's 0.7% borrowing cost.
In effect, the guarantee has made government's lower borrowing cost available to the public, which is good.
A well-designed public debt management strategy can help countries reduce their borrowing cost, contain financial risks and develop their domestic markets.
Spain, by contrast, has seen its borrowing cost shoot up in recent weeks, reflecting growing fears of a possible future default.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com