MPC reassures status quo on rates, but changes view on inflation

The temporary supply shocks that have led to higher inflation has been kept aside by the MPC while focusing on growth

The credit policy announced on Friday was not expected to come out with anything very different from the earlier announcements. There are no changes in policy rates as expected with the Reserve Bank of India (RBI) reiterating commitment to growth, which is still in early stages. But yet there are some things that the market always looks forward to in terms of numbers and language. Both are important. Any change in forecasts would make economists rework their models to see if they need to change their assumptions. The language is important, as it could talk more about what to expect