The efficiency of monetary policy, as a rule, gets enhanced if there is a surprise element. If everyone expects the expected, then the impact is less distinct as the market has buffered in the same. The monetary policy announced on September 29 took the market by surprise with a bold and aggressive reduction in interest rate by 50 bps. This step can be called bold because we are assuming a certain inflation path to fructify while it is aggressive as the rate cut is of a higher order and a deviation from the 25 bps approach pursued so far.

Source :