The Reserve Bank of India (RBI), in its first Bi-monthly Monetary Policy Statement' 201718, has kept the key policy rate unchanged at 6.25% as expected as the central bank had changed its stance from accommodative to neutral in the last policy meet. However it narrowed the LAF corridors and increased the reserve repo rate by 25 basis points (bps) to 6.0% in order to benefit the banks amidst the prevailing liquidity conditions in the economy. Easing fears of banks, cash reserve ratio (CRR) also left unchanged at 4%. Takeaways from Monetary Policy Committee (MPC) commentary: MPC's view on inflation: CPI inflation increased to 3.7% in February after moderating continuously over the last six month owing to the increase in food and fuel prices....