A prudent comma, not a myopic full stop!

The RBI has not used the word stickiness in its policy statement while characterising core inflation, but instead used "unyielding core inflation"

The unanimous decision of a RBI pause is a tactical one a fine balance between looking forward optimistically and glancing back in the rear-view mirror to gauge the impact of previous coordinated actions. Interestingly, the RBI decision to pause is reminiscent of the reputation equilibrium in monetary policy (Barro & Gordon, 1983), where the policy outcome is a combination of discretion and rules in policymaking!

We believe that this decision is justified on two counts.

First, this policy action has clearly indicated to the market that the central bank is comfortable with making a distinction between policy strategy and policy