The monetary policy statement indicates that the Indian economy continues to progress on the expected path, with improving growth indicators and inflation contained within the targeted range. The central bank has expressed strong confidence in the government’s commitment to fiscal consolidation. As the impact of monetary policy measures taken so far play out in terms of bank funding costs, lending rates are expected to continue to moderate. Overall, macro-economic conditions are conducive for an improving growth trajectory as the various policy measures announced by the government take effect.