RBI Monetary Policy, June 5 -- The Reserve Bank of India (RBI) may have left the repo rate unchanged at 5.25%, but it was the central bank's aggressive measures to attract foreign capital and support the rupee that captured the attention of bond market participants.

Announcing its June monetary policy decision, the RBI unanimously voted to keep rates unchanged and retained its neutral stance, a move that was widely anticipated by economists. At the same time, the central bank unveiled a series of measures aimed at strengthening foreign capital inflows as the economy grapples with elevated crude oil prices, foreign fund outflows and a weakening rupee following the Iran war.

The measures included scrapping capital gains tax for foreign in...