New Delhi, Sept. 11 -- Rising global bond yields could remain a key headwind for India's monetary policy and may limit the scope for further rate cuts, even as the country's economic growth remains resilient, HSBC Mutual Fund said in its latest market outlook.

The fund house said the direction of India's interest rates would depend not only on domestic economic conditions but also on the global interest-rate environment, particularly the US rate cycle.

"Rising global yields are likely to remain a headwind going forward," HSBC Mutual Fund said, adding that with growth remaining broadly resilient in India, rate hikes will depend on the US rate hike cycle and whether inflationary pressures remain persistent domestically.

The assessment co...