Fiscal stimulus exit may be decided after the quarter; political consensus and GST timing will influence withdrawal.
The government signalled a prospective fiscal stimulus exit after the October-December quarter, tying withdrawal timing to quarterly growth outcomes, the Reserve Bank's initial monetary tightening, and the expected implementation timetable for the Goods and Services Tax; it advocates country-specific exit plans, stresses fiscal consolidation to restore the fiscal deficit to prudent limits, and conditions decisive withdrawal on securing a broad political consensus to enact reforms in labour, insurance and financial sectors.

Statutory Liquidity Ratio increase prompts calibrated exit from stimulus while key interest rates remain unchanged.
The Reserve Bank raised the Statutory Liquidity Ratio as a first step in a calibrated exit from an easy money stance while leaving key interest rates unchanged; the increase is unlikely to materially affect banks because they already hold government securities above the new requirement, the average SLR being higher than the revised level. The Bank emphasized sequencing withdrawal to protect recovery while addressing inflation expectations and maintained its growth forecast while increasing its inflation estimate.

Soft monetary policy expected as government signals preference for maintaining an accommodative central bank stance despite inflationary pressure.
Finance Ministry urged continuation of the current soft monetary policy ahead of the central bank's policy review, expressing expectation that the bank would maintain its accommodative stance despite noted food-driven inflationary pressures, and highlighted upcoming consultations between senior government and central bank officials prior to the review.

Currency appreciation signals economic strength; government says limited intervention while movements remain non-volatile and fundamentals-driven.
The statement treats rupee appreciation as evidence of economic strength from fundamentals and capital inflows, and explains that while the RBI or government can intervene, such foreign exchange intervention is constrained when movements are non-volatile, two-way, and driven by fundamentals.