RBI credit policy: Split views ahead of RBI; Sensex, Nifty fall

Headline inflation on Wednesday picked up on Wednesday, which would appear to rule out new monetary easing.

March 15, 2012 / 10:51 IST

A very divided market awaits the RBI's monetary policy review later in the morning, with traders saying the central bank may well deliver a surprise rate cut -- its second unexpected action in a week.

Headline inflation on Wednesday picked up on Wednesday, which would appear to rule out new monetary easing, especially after the RBI already delivered a cut in the cash reserve ratio last week.

However, the same data showed non-food manufactured inflation slowed to a 14-month low, arguing for a potential cut in interest rates.

The main 30-share BSE index fell 0.4%, after ending the prior session at its highest close since February 24. The 50-share Nifty index fell 0.5%.

first published: Mar 15, 2012 10:36 am

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