Mumbai, April 10 -- The Reserve Bank of India (RBI) has taken a more accommodative stance in its monetary policy, as inflation expectations have shown signs of easing.

According to a recent report by the State Bank of India (SBI), the central bank's decisions are not only influenced by past inflation trends but also take into account expectations for the future.

It said "We explore whether shifts in RBI's monetary policy stance have followed changes in household inflation expectations. Specifically, we hypothesize that the RBI's stance responds to directional changes in inflation expectations".

The report noted that the RBI's recent shift in policy stance--from neutral to accommodative--is backed by moderating inflation expectations. H...