The MPC kept its policy unchanged, offering a second dose of tranquiliser to the markets already calmed by the news of the temporary ceasefire between USA and Iran. The Report discusses the RBI changed commentary on inflation and offers a view on the upside risks. Similarly, the risks to growth are explained, and an answer is offered to the question as to whether they are great enough to warrant a policy change. Further, a summary of actions on currency and liquidity is provided. The Report concludes with the SBICAPS view on the future path of policy and bond yields.
