The monetary policy announcement is in line with expectations. The Reserve Bank of India has noted encouraging trends in growth, indicative of a strengthening recovery. At the same time, it has opted to monitor inflation trends for some more time before taking any further steps to ease monetary policy. I expect to see easing of rates over a period of time as further transmission of accommodative monetary policy takes place. Inflation is within the targeted range and should this trend sustain, we could see further policy rate action as well. Overall, there is stability in the economy with a gradual improvement in growth.