The RBI policy statement is all about forward guidance: both implicit and explicit. First, the RBI shift from time-based guidance to state-based guidance is a commitment to support growth in an implicit manner in the current uncertain environment. Time-based is more explicit, state-based is more implicit. For example, growth on a durable basis is not quantifiable but merely an implicit guidance on the state of the economy. Second, the explicit guidance of a guaranteed liquidity in the secondary market. Interestingly, such an assured OMO support was resorted to by Bank Indonesia and BSP (Central Bank of the Philippines) in 2020,
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