Rahul Bajoria

On the growth front, the need for monetary support remains high

Even though monetary policy cannot directly counter supply-led shocks to food prices, authorities can still demonstrate their commitment to controlling inflation

The RBI's caution on inflation and its relatively hawkish position demonstrate its steadfast commitment to achieving the inflation target of 4%

To us, the important emphasis was on external stability, which the RBI has clearly placed a lot of importance on

Growth prospects have brightened and inflation outlook has eased, despite lingering concerns as to potential broad-based supply shocks