The MPC’s unanimous decision to keep repo rate unchanged is in line with our expectation. We expect inflation to ease further in coming months, possibly opening up room for rate cut. The MPC expects real GDP to grow 10.5% in FY22 and inflation to print at 5-5.2% in H1FY22. On the regulatory front, the most important announcements are two-phased normalisation of CRR, extending HTM limit for SLR holdings, deferment of capital conservation buffer and allowing retail investment in gilts. Overall, the MPC’s decision bodes well for growth and financial stability.