New Delhi, April 8 -- 'Goldilocks' refers to a situation that is just right. Derived from the fairytale character who prefers things in the middle, it describes an optimal, balanced condition. In the previous policy review on 6 February 2026, the RBI governor highlighted that this was the prevailing condition in India, and rightfully so. The GDP growth rate was north of 7% and inflation much lower than the target of 4%. No other country in the world could boast of such a situation.

Now, as we all know, the needle has moved. War in West Asia. Oil on the boil. INR gasping, until the recent pullback. Inflation looking upwards. Question marks on GDP growth. This is a testing situation for the RBI's Monetary Policy Committee, as the interest ...