As India is battling macro woes of low GDP, increasing inflation and tight liquidity system, all eyes are now on the Reserve Bank of India's (RBI) credit policy review scheduled on June 18. In its annual credit policy for 2012-13 on April 17, the RBI had slashed short-term lending rate or repo rate by 0.50% to 8% to boost the economy. As India's Q4 FY12 GDP fell to a drastic low, most economists pointed out that a tight liquidity situation created by RBI's policy stance as one of the major factor. Hence, it is expected that the central bank will focus on growth this time and not much on inflation.

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