RBI stays the course-RBI Monetary Policy Review-Feb 23
RBI rate hike of 25 bps and guidance of a tightening policy is a signal of caution that will stay for a long while. Markets will have to search for yields on a largely flattish yield curve. Bank credit growth can lead to banks lowering their holdings of g-secs. Real interest as measured by repo rate to CPI inflation has come up in this policy. Is RBI targeting positive real rates?
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