New Delhi, Aug. 5 -- 'Non-event', is how a more outspoken observer of the Reserve Bank of India (RBI) described the 62nd meet of its Monetary Policy Committee (MPC), in the run-up to the just-concluded meet. Others, more diplomatic, or, perhaps, wary of displeasing the central bank, chose their words more carefully. But the broad consensus was that the MPC would stand pat; on rates for sure and, in all probability, on stance (neutral) as well.

So, the unstated question after RBI Governor Sanjay Malhotra read out the MPC Statement at the conclusion of the MPC's meeting on Wednesday was whether it was a non-event.

A careful reading of the statement shows it was anything but, with the MPC striking a far more dovish note than expected (warr...