The recently held Reserve Bank of India (RBI)’s monetary policy delivered a sharp surprise to the fixed income market, not only by maintaining a status quo on rates (while the market expected at least a 25 basis points cut from 6.25 per cent), but also by changing its two-year stance of being ‘accommodative’ to ‘neutral’, potentially implying the end of the current easing cycle.
The market reaction to the same was sharp, as it had considered rate cut a given, especially after demonetisation. However, the initial indication of the current RBI stance was visible when the central bank chose
The market reaction to the same was sharp, as it had considered rate cut a given, especially after demonetisation. However, the initial indication of the current RBI stance was visible when the central bank chose
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