The Reserve Bank of India will announce the mid-quarterly review of its monetary policy tomorrow. CNBC-TV18 poll of bankers and economists shows that 70% of the respondents expect a no-action credit policy from the central bank tomorrow, primarily because they expect that the Reserve Bank will want to see one more month.
However, 30% of bankers, economists expect a rate cut in the credit policy.
The RBI is aware that railway freight rates, cement and steel prices have risen in March and fuel prices are yet to be passed on. Global international crude prices have not at all been adjusted for in the domestic WPI number. More importantly, the Reserve Bank will want to see the fiscal deficit number before it makes any decisive move of cutting rates. That