New Delhi, Aug. 6 -- The Reserve Bank of India's latest monetary policy decision was broadly balanced. RBI's monetary policy committee (MPC) clearly outlined both the upside and downside, signalling a nuanced and carefully considered approach.

Although the majority did not expect any rate cut-particularly after the recent large reduction and given the neutral stance amid global uncertainties-I was still hoping for a cut.

Although front-loading of the rate action has already occurred, if conditions remain benign, there's no harm in continuing support. The recent cuts need not preclude further action if the macro environment justifies it.

As for the 'neutral' stance, post 2013-14, markets have tended to interpret it chiefly as a signal o...