New Delhi, June 5 -- The Reserve Bank of India's (RBI) credit policy is important not just from the point of view of the repo rate and stance, but also the commentary which goes along with it on the state of the economy. While the state of the economy is covered by RBI's monthly Bulletin, close attention is paid to what the policy states.

The June policy is even more significant because India's economic situation is anomalous. First, the latest inflation number is 3.5% while GDP growth last year was 7.6%. Going by indications given by RBI at different points of time, the economy is resilient with positive tendencies. This is the goldilocks tale-which has now become a cliche.

But it is also obvious that inflation will rise and growth wil...