The Reserve Bank of India’s latest policy surprised not in content but in delivery. A 50-basis-point cut in the repo rate, a 100-basis-point reduction in the cash reserve ratio, and a sudden pivot to a “neutral” stance came as a single, disorienting package. The central bank’s communication strategy, once regarded as the bedrock of its credibility, was left exposed.Monetary policy, especially in a large and complex economy like India’s, is as much about managing expectations as it is about altering interest rates. This is why central banks, from the US Federal Reserve to the European Central Bank, invest significant effort in shaping their language. Every word, every pause, every emphasis is intended to signal direction.
.png)
