India’s financial markets are entering a decisive phase as the Reserve Bank of India prepares to deliver its latest monetary policy verdict, a development that is expected to shape investor sentiment across equities, bonds, and currency markets. With inflation moderating but still above the comfort threshold, policymakers face the challenge of balancing price stability with the need to support economic growth. Market participants are bracing for a status quo on interest rates but are keenly watching the central bank’s tone on liquidity and inflation risks.