Dear Reader,

For those who expected fireworks, today’s monetary policy announcement was a bit of a disappointment. Yet, there is more than meets the eye when one reads between the lines.

The Reserve Bank of India’s October policy decision earlier today may look like a hold, but it contains a clear message: inflation has eased meaningfully, growth remains resilient, and policy space is being preserved for when the global environment turns volatile.

As my colleague Aparna Iyer wrote in her piece , while today’s policy did not gift a rate cut, it made up for that with an adequately dovish slant in its language and indications.

Look at the data. The RBI doesn’t see immediate danger from inflation and is optimistic on growth. That’s a sweet spot for any central bank to be in and prov

See Full Page