First year of Das: Floccinaucinihilipilification or Panglossian?

The no-rate-cut policy and preference to wait for the Budget and clarity on the fiscal front demonstrate Shaktikanta Das is maturing in his new role.

Globally, central banks have stopped surprising the markets. Most prepare the markets for what they do. The latest Reserve Bank of India (RBI) policy is an exception to that trend. Can the non-action be read as status quo or a pause or even postponement of the inevitable? It’s a surprise but the shocker is all six members of the monetary policy committee (MPC), including the eternal dove Ravindra Dholakia, endorsing it.

Of course, there is an unambiguous forward guidance: The pause is temporary and there is monetary policy space for future action. 

Since the beginning of the rate cutting cycle in February,