This piece of information released at the RBI governor’s press conference after the monetary policy committee meeting on Wednesday is definitely more important than RBI’s monetary policy review. This time around, it seems bank recapitalisation and banking reforms will go hand in hand. There was a minor 3-4 basis points rally in the market after the Indian central bank kept its stance of the policy unchanged—neutral. The Indian central bank has made it amply clear that it has no bias and only the flow of data in future will determine the trajectory of the policy. Here, too, there is no surprise—the market has all along been a bit over-ambitious on the inflation front while the central bank remains pragmatic.

Source: Mint December 06, 2017 14:03 UTC