Some see CRR cut as tight liquidity continues.
RBI had said last week it would continue with the monetary tightening till the inflation trajectory showed a downward trend.
Amid declining growth and moderating inflation, the Reserve Bank of India is likely to pause hike in interest rate at the mid-quarterly review of the Monetary Policy on Friday.
Given that food inflation remains high, the inflation outlook will be influenced by concerted efforts to break food inflation persistence.
The Reserve Bank of India has kept all key interest rates unchanged in its mid-term credit policy review announced on Monday.
Consequently, the reverse repo rate under the LAF will remain unchanged at 7.5 per cent and the marginal standing facility (MSF) rate at 9.5 per cent.
While government bond yields might rise, as there are expectations that the Reserve Bank of India might increase the repo rate in the second quarter monetary policy review due to high inflation.
RBI expects more from the government than last week's very limited package of reforms and fiscal measures.
Most expect a 25 bps rate hike today, but want pause.
The possibility of key policy rate cut is not bright as industrial output grew by 6.8 per cent in January against just 2.5 per cent in the previous month.
Experts say the central bank will refrain from using the CRR as a liquidity tool, as a reduction in the rate will go against its current anti-inflationary stance.
The Reserve Bank has raised short-term borrowing rate (reverse repo) by 0.50 percentage points and lending rate (repo) by 0.25 percentage points.
The immediate priority for the new governor will be to draft the mid-quarter review
The RBI is expected to respond to some bankers' demand for abolition of cash reserve ratio, the amount of money which banks are required to keep with the central bank in cash.
This week, bond yields are expected to soften while the rupee could strengthen.
The Reserve Bank of India (RBI) has slashed the repo rate by 25 basis points from 7.75 per cent to 7.5 per cent with immediate effect.
SBI Chairman Pratip Chaudhuri feels a 0.50 per cent interest rate cut is needed.
Rajan, who will complete a month as the governor of Reserve Bank of India on Friday has already succeeded in restoring calm in the foreign exchange market.
Expect rate rise pause, amid market expectations to the contrary.
Ahead of the mid-quarter review of the monetary policy on December 18, RBI Deputy Governor Subir Gokarn on Saturday said inflation continues to be the primary concern for the central bank.
Ahead of the mid-quarter review of the monetary policy on September 17, senior-most Reserve Bank deputy governor Keshab Chandra Chakrabarty on said their top priority is to keep inflation under control.
State Bank of India Chairman Pratip Chaudhuri again made a strong pitch for a reduction in banks' Cash Reserve Ratio (CRR) at the Reserve Bank's mid-quarter review of monetary policy scheduled September 7.
India Inc on Thursday expressed fear that the RBI's decision to raise key short-term rates will push up the cost of borrowing, making some of their projects unviable and hurting expansion plans.
The slowdown has mainly been on account of poor performance by the manufacturing and mining sectors.
The Reserve bank of India has kept the repo rate and reverse repo rates unchanged in its mid-quarter review of monetary policy announced on Thursday.
State Bank of India Chairman Pratip Chaudhuri says though Friday's cash reserve ratio cut will help ease short-term rates, liquidity may continue to be tight and, hence, a further 25-bp (basis point) cut in CRR can be expected.
Repo rate may well end 2013 at 8 per cent, where it had begun the year.
Food inflation rose to 9.46 per cent for the week ended December 4 on account of higher prices of rice, vegetables, milk and fruits. Food inflation stood at 8.60 per cent in the previous week.
Ernst & Young India on Tuesday said that despite the steep fall in headline inflation in August, the Reserve Bank is likely to persist with monetary tightening measures by hiking key policy rates by at least 25 basis points at its mid-quarter review on Thursday.
CPI inflation slowed to 9.39% in April compared with 10.39% in March.
Raghuram Rajan called for purposeful and effective action to counter the atmosphere of cynicism, which has slowed down the decision making process.
There's need to address growth, but weak rupee putting pressure on prices.
An action on the rate front is unlikely to figure in Rajan's plan for the moment.
After fighting inflation for more than two years, Reserve Bank of India (RBI) Governor Duvvuri Subbarao finally managed to bring it below the five per cent level - the tolerance level of the central bank - in FY14.
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BSE auto index surged 2%, capital goods, healthcare and oil & gas indices also up.
Ahead of RBI policy meet, India Ratings said an interest rate hike of 0.50 per cent in the remaining part of the fiscal will throw the BSE 500 companies into a quandary.
SBI is the first major state-run bank to hike lending rates after short-term rates rose as a result of the Reserve Bank of India's liquidity tightening moves announced in July.
In its mid-quarter review of monetary policy, RBI on Wednesday kept all key interest rates unchanged notwithstanding persistent high inflationary pressure.
Reserve Bank Governor Raghuram Rajan on Friday said the recent rally in the rupee is comforting but said the currency has not yet achieved stability which will only be reached when he stops keeping a "minute-by-minute" track of the unit.
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The broader consensus was that the Fed would cut the monthly stimulus of $85 billion by $10-15 billion.
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