Status quo from RBI

No news is good news. That seems to be the major takeaway from the mid-term review of the monetary policy of RBI, as there is no pain caused to anyone. And even no gain in a way, as the status quo prevails. No change in the repo and no cut in the CRR, either. Maybe this is what the economist would call a Pareto optimal situation. The markets remained unmoved to begin with, before turning whimsical, and the rupee was fairly stable as RBI’s action on cancellation of forward contracts had its effect on the day of the policy.

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