Monetary policy: No concern on growth, no comfort on inflation

The RBI estimate of growth, as well as, inflation for the current financial year remains unchanged, but there has been some fine-tuning

Not too many were expecting a rate cut by the Reserve Bank of India (RBI) despite the recent turmoil in global markets and near-certainty about the US Federal Reserve’s first rate cut in four years in September. But there had been talks about a possible change in the stance. RBI Governor Shaktikanta Das has just two words for the market: Have patience.

The markets seemed to have listened to him. Movements in both bond yield, as well as currency, were muted in the absence of any surprise in the policy.

It’s pretty obvious that at this point,