The MPC’s switch in stance to ‘neutral’ foreshadows a dovish turn in monetary policy—should inflation ease, that is. Market players who have eagerly been awaiting a pivot ever since the Fed began easing mustn’t miss RBI’s emphasis on its 4% target being durably achieved.

There is a change in the RBI governor’s statement from the last policy with focus increasingly shifting to balancing growth and inflation rather than being ‘actively disinflationary’.