The Reserve Bank of India will have to take the interest rate related decision as the two day meeting of six-member Monetary Policy Committee (MPC) meeting starts today.
The MPC will be considering the impacts on note ban, budget and inflation numbers.
Most of analysts and bankers have been expecting a cut of 25 basis points in the repo rate.
In its last MPC meeting of December 7, the rates were kept unchanged and it continued an accommodative policy stance.
RBI Governor Urjit Patel will report his third policy review on February 8. Most analysts believe that due to significant decline in the Consumer Price Index (CPI) may push RBI to cut the policy rate by 25 basis points.
The analysts are also expecting that RBI may also inform the impact of demonetisation and money circulation related numbers of February 8.