Reserve Bank of India (RBI), in spite of having some legroom to ease policy, preferred to wait it out today, especially when Indian new financial year budget is due this month.

RBI policy statement sums it all what has been happening throughout global economy, expect for mentioning any clue about INR, since it is not a policy tool. Mr. Rajan is the first Indian central banker to introduce inflation targeting policy. RBI has set 4% inflation target +/- 2%, to be effective from 2017. For 2015-16 financial year, RBI target was for 6%, which the bank is likely to meet, especially since CPI is already around 5% level. RBI target for next year is around 5%. So RBI has ample room to ease policy further but it seem to be choosing to wait and watch the reforms taken up by the government.

However, according to Mr. Rajan, monetary policy is likely to be accommodative, so further easing can't be ruled out.

While inflation has been low, large thanks to weaker commodity prices, RBI for past months have been fighting battle elsewhere - to contain the risks in Banking sectors by stringent regulations and reforms, arising from high level non-performing assets and overleveraged corporates.

Over levered corporate sectors remain India's greatest vulnerability.

INR is trading relatively stronger post-policy, at 67.85 per Dollar.