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RBI is saving its ammunition for later in case situation worsens going ahead

RBI is saving its ammunition for later in case situation worsens going ahead

Market participants went into the policy acknowledging the tough decision that confronted the MPC to manage their primary objective of inflation targeting (at the back of the recent high inflation prints and uncertain outlook), at a time when growth and outlook continue to be weak. While the pause on policy rates was largely on expected lines, the key takeaway from the policy was the shift in emphasis from addressing the stress in financial markets towards addressing the stress in the real economy and the possible stress in the banking system

 

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