RBI may cut rate only after retail inflation eases to 5%, says expert

The thrust of RBI's announcements was towards altering the liquidity and macro-prudential frameworks to ensure better monetary policy transmission

There has rarely been a Reserve Bank of India (RBI) policy which has maintained the status quo on rates but delivered much beyond expectations. In a constrained optimisation environment, where space for policy rate cut was limited, the RBI has been able to maximise its support for growth through a series of unconventional monetary policy measures. While the focus has been on improving both the cost and availability of credit, the credibility of the inflation targeting framework has been preserved by keeping the policy rate unchanged.

The thrust of the announcements was towards altering the liquidity and macro-prudential frameworks to ensure