SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. RBI governor may not announce a rate cut in mid-quarter policy review

RBI governor may not announce a rate cut in mid-quarter policy review

15 Mar 2012 Evaluate

The Reserve Bank of India (RBI) Governor Duvvuri Subbarao, will announce the mid-quarter policy review today. The view of experts on whether he will announce a rate cut remains divided. While there is a section of economists that believes that the rate may not be possible given yesterday’s inflation numbers, others feel that the core inflation has actually shown a declining trend, giving the governor some window of a rate cut.

The governor himself has resisted increasing the interest rates for a long time now. He has also been critical of the government’s finances saying that a mere rate cut will not help growth if the fiscal deficit is not brought under control. Nonetheless he has signaled a change in the stance of RBI from controlling inflation to augmenting growth, by bringing down the CRR. This has raised hopes that the upcoming review may bring in a rate cut albeit by 50-75 basis points.

However, Subbarao on January 24 during the quarterly monetary policy review said, ‘based on the current inflation trajectory, including the fact there is considerable suppressed inflation, it is premature to begin reducing the policy rate.’

Currently, repo, the rate at which the RBI lends to banks, is at 8.5%; reverse repo, the interest it pays banks for deposits is a percentage point lower at 7.5%. The cash reserve ratio, the proportion of deposits to be kept with the RBI, after a 75 basis points cut last week is at 4.75%.

Inflation, which showed signs of easing early this year is climbing again primarily due to a rise in food articles. Crude oil, where India imports more than two-thirds of its need, has risen about 17% this year. If the rise is passed on to consumers then prices of products will rise across the board. If the government subsidies, it ends up borrowing more from the market, pressuring interest rates.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×