A Rate cut that was widely anticipated and priced in was delivered by the RBI MPC. Policy rate reduction was clearly a question of timing in the current context considering the evolving situation on the currency led by global factors and capital flows. At the same time, there has been no change in stance or any other provision of liquidity support. While the rate cut was clearly subjective, the lack of specifics on liquidity could potentially impeded transmission. While yields have moved up a bit, it is anticipated that the RBI would continue to ensure targeted infusion of liquidity over the coming months that should enable yields to stay anchored. Overall, the weaker than anticipated growth over the previous year and projection on CPI for FY26 closer to the target has provided confidence to the RBI to ease rates