When the Monetary Policy Committee announced a bazooka of monetary easing on June 6, the bond market lurched from euphoria to anxiety, and ultimately to confusion. The initial reaction was one of relief and optimism, but doubts quickly surfaced, particularly after the Governor’s post-policy press conference.The market was left wondering whether the easing was substantive or already exhausted. The Reserve Bank of India’s communication, more than the action itself, appeared to rattle sentiment and obscure the path forward.
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