I believe that by using the policy to set the scene and underscore the platform he inherited, the governor has created an environment within which the interest rate market should remain interesting and soft, possibly re-testing the lows witnessed in the last few weeks, as fundamentally nothing has changed. If anything, the positives have been underlined.
Most market participants were keeping their faces straight and not saying much when asked the question on their expectations from the credit policy.
In their hearts however they hoped - rather than expected - everything possible - a bank rate cut, hopefully a CRR cut and a few even with a repo rate cut.
However, with the recent public market cooling statements from the RBI, and with the Governor
