The repo rate and the stance were not expected to be changed in this policy, and they were not. However, there were some hopes among market participants that the tone of the policy might be a bit dovish, given that there are now strong expectations for the US Federal Reserve (Fed) to be aggressive in its rate-cutting cycle.
The Reserve Bank of India (RBI) has not only stayed away from exhibiting any intention to follow the Fed but has also shown maturity by not providing any forward guidance on rates, given considerable uncertainty in global financial markets,
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