Citigroup analysts have highlighted that India’s central bank’s (RBI) unexpected decision to buy back bonds worth 400 bln rupees indicates a proactive approach to improving liquidity. This move, scheduled for May 9, marks a shift from the RBI’s previous strategy of maintaining tight liquidity conditions. With this liquidity easing, market observers are anticipating a potential shift in the RBI’s monetary policy stance from ‘withdrawal of accommodation’ to a more neutral position in its upcoming June policy review.