New Delhi, Feb. 6 -- On Friday, the Reserve Bank of India's (RBI) rate-setting Monetary Policy Committee (MPC) did what everyone expected it to do. It kept both the repo rate and stance unchanged. Unless things change dramatically, and we really can't rule that out in today's post-Trumpian world, the repo rate-at which India's central bank infuses liquidity- will remain at 5.25%, at least till the next MPC meet in April. The stance will also remain neutral.

The improvement in the Indian economy's growth impulses-growth estimates for the first and second quarters of the next fiscal year have been revised upwards marginally-is expected to continue. Inflation is also expected to remain well within the target range specified under the Flexib...