RBI to announce its credit policy today

Tuesday: The Reserve Bank of India is set to announce the credit policy on Tuesday. There is almost a war cry out for a rate cut. A CNBC-TV 18 poll indicated that 80 per cent of the respondents see a CRR cut. Of this, 20 per cent see a 50 bps cut. On the repo, the market is divided with 50 per cent expecting a repo rate cut.

A day before the monetary policy, the professional forecasters' survey conducted by the Reserve Bank of India revised GDP forecast to 5.7 per cent as against 6.5 per cent in 2012-13 while raising inflation estimate to 7.7 per cent versus 7.3 per cent for the year.

Persistent inflation and easy availability of money (liquidity) may to prompt the central bank keeping rates unchanged on Tuesday.