The RBI's decision to maintain rates despite inflation was expected. The author posits that markets infer a hierarchy in the RBI's objectives, placing exchange rate stability and government borrowing costs above inflation control. This perception arises from the RBI's past actions, like delayed tightening and tolerating pandemic inflation, rather than official statements. This entrenched market view influences future policy expectations, potentially affecting the RBI's credibility and its ability to manage inflation against these perceived, higher-priority goals.