RBI’s stance: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is gearing up for another meeting. As the three-day meeting concludes on February 10, all eyes are on the expected shift in the policy stance from 'accommodative' to ‘neutral.’

Accommodative Stance:

An accommodative stance suggests a readiness to infuse the economy with funds to fuel growth.
During such periods, the central bank is likely to play the rate-cut card, providing a monetary boost.
This approach is a go-to strategy during times when the economy needs a supportive nudge, and inflation isn't looming large.

Neutral Stance:

Think of this as the financial tightrope walk. A neutral stance indicates that the central bank is open to making adjustments in either direction—cutting or raising interest rates.
The central bank remains non-committal, allowing room for interest rates to sway based on incoming economic data.
This balanced approach is adopted when the central bank needs to juggle priorities between curbing inflation and fostering growth.

Hawkish Stance:

A hawkish stance signals that the central bank's primary focus is on taming inflation.
Brace for impact—interest rates are likely to go up. The central bank tightens the monetary reins to cool down demand and rein in the money supply.
This stance is a strategic move to keep inflation in check, and during such periods, a rate cut is about as rare as a solar eclipse.

Calibrated Tightening:

Precision in policy moves. Calibrated tightening implies a clear "no" to cutting the repo rate in the ongoing cycle, but with an assurance that rate hikes will be measured.
Don't expect a rate increase at every policy meeting, but know that the overall stance leans towards a gradual hike.
This approach allows flexibility, with the central bank ready to tighten the reins outside of the scheduled policy meetings when the economic situation demands it

All you need to know about RBI stance

An accommodative stance suggests a readiness to infuse the economy with funds to fuel growth.

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