The Reserve Bank of India surprisingly cut the repo rate by 50bps (double the 25bps expected) to 5.50%, and in a surprise move, the RBI also shifted its stance from accommodative to neutral.

Looking ahead, Goldman expects the RBI to stay on hold for the rest of the year unless growth slows sharply. The front end of the IGB curve should remain supported by strong liquidity and favorable demand-supply dynamics. The bank favors 2Y IGB and expect the IGB curve to steepen.

https://www.zerohedge.com/markets/india-central-bank-shocks-biggest-rate-cut-covid-growth-inflation-stall