Despite the dovish tone, the minutes suggest the bank sees little room for rate cuts in the current environment
The nervousness in the bond markets on account of higher inflation, larger supply of bonds in H2 and absence of RBI OMOs so far is evident
There is no provision for extension of tenure of external members, and it is likely that the govt will appoint new ones
Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month
The move will bring NBFCs and HFCs at par with banks in treatment of loans given for restructuring of real estate projects without downgrading the asset classification
"Multiple objectives are not a good thing. They confuse the markets," said a senior economist not wanting to be quoted.
RBI's focus now is on improving transmission and lending
As a push to ensure that retail loans remain growth drivers for banks, RBI has incentivised credit to segments such as automobile, housing and MSMEs
The RBI raised its inflation projection for the six months to Sept to 5-5.4% from 3.8-4% previously, while terming the outlook on price rise as "highly uncertain"
Despite expectations of a moderation in inflation from the elevated level of 7.35% in Dec 2019, the RBI's MPC expects a hardening of prices of other food items, notably those of pulses and proteins
From RBI MPC's decision to keep the repo rate unchanged to the latest on coronavirus, here are the day's top headlines
Maintain balance between growth and financial stability
The Monetary Policy Committee noted that since its meeting in October, global economic activity has remained subdued
The markets were indeed surprised because everyone was hoping that rate cuts will continue
MPC has room to pause, alongside other central banks, to consider future plans
When expected inflation drops, the policy rate should drop even more
Minutes of meetings show maintaining the 'accommodative' stance was the Reserve Bank governor's idea
At 4.75%, India will still offer positive rates of return to investors seeking high yields
Citing geo-political uncertainties and elevated food prices, the RBI revised inflation projection upward to 3.4 per cent for Q2FY20, while projections were retained at 3.5-3.7 per cent for H2FY20
The policy decision will be announced at 11:45 a.m. in Mumbai, followed by a press conference 15 minutes later by Das