Decision to hold rates appropriate and prudent, MPC unanimity a surprise

The RBI governor's post-policy conference also stated that uncertainty on tariff negotiations made any quantification on the growth impact difficult at this juncture

The decision of the central bank’s Monetary Policy Committee (MPC) to keep rates unchanged was unsurprising for many because it was a close call. However, the rates market was disappointed on two counts. First, it was the unanimity of the decision. A vote split was expected, with the anticipation that a few external members would be in favour of a cut owing to a subdued inflation trajectory. But all six members voted to keep the rates on hold and maintain a “neutral” stance. And second, there was robust commentary on the growth outlook, despite mixed growth signals, and a relatively