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Policy Stance
Along with each rate decision, the RBI states a stance, such as accommodative, neutral or tightening. It signals the direction of future policy: accommodative leans toward cuts, tightening toward hikes, and neutral keeps both options open.
Why It Matters
Markets often react more to a change in stance than to the rate decision itself, because the stance is about the future.
In India
In October 2026 the RBI moved its stance from neutral to “calibrated tightening”, telling markets that more hikes were possible and cuts were off the table for now.
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