The central bank, however, changed its monetary policy stance from 'accommodative' to 'neutral', stating that it may have limited space for further easing. The Monetary Policy Committee (MPC), which consists of three RBI officials and three external members, cut the repo rate to 5.50 per cent. The RBI also cut the cash reserve ratio by 100 basis points to 3 per cent, adding to already surplus liquidity. "The central bank has chosen to front-load the growth adrenaline," said Shubhada Rao, head of Mumbai-based economics advisory firm QuantEco Research. BENIGN INFLATIONThe central bank cut its inflation projection for the current financial year and now expects it to average 3.7 per cent compared to 4 per cent previously.
