The RBI is probably playing a patient waiting game and for the right reasons
RBI decided to front load increasing the Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) by 0.5 percent that was previously scheduled to be effective in August and December
Regarding bond yields falling after the rate cut news, he says it was nothing but profit-booking, says Jayesh Mehta, MD & Country Treasurer, Bank of America
The RBI in its first quarter (April-June, 2013-14) monetary policy left key rates unchanged hinting at rate cuts in future subject to market stability. With this, D Subbarao, the governor who had taken the central bank assignment in September, 2008; presented his last quarterly policy before he hangs up his boots in September this year.