In order to continue providing support to growth, the Monetary Policy Committee kept all key policy rates unchanged in the Reserve Bank of India’s February policy review meeting, along with an unchanged accommodative monetary stance, while delivering an extremely dovish outlook as far as the CPI inflation trajectory is concerned. We, along with a majority of other market participants, had expected the RBI to hike the reverse repo rate at least by 20 basis points in the current policy, but the central bank decided to surprise once again, by staying on the sidelines, as it did in the December 2021 policy.
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