Mixed views abound on whether RBI governor Duvvuri Subbarao will spring a pleasant surprise in the form of a rate cut during Tuesday’s first-quarter monetary policy review. Many feel that the Reserve Bank will maintain a status quo on key monetary policy rates because there has been no significant moderation in inflation. However, a few believe that the RBI may bring down the cash reserve ratio (CRR) to address the economic slowdown, which is continuing to weigh on corporate performance. The optimists also believe that the apex bank’s guidance will be much less hawkish..........
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