The policy actions of the RBI over the last few months has shown a clear focus on supporting growth. The central bank has unleased rate cuts, liquidity gush as well as easing of macroprudential norms to support growth. Policy rate are 50 basis points (bps) lower with back-to-back rate cuts since February. The effective rate cuts are closer to 75 bps with overnight rates closer to SDF, which is the lower-end to the policy rate corridor. Even more significant has been the durable liquidity infusions measures, taking both analysts and the markets by surprise.
To give context to the significant
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