According to HDFC Bank Chief Economist Abheek Barua: "The RBI is unlikely to go against the international trend of monetary easing and 0.25 percent or possibly 0.50 percent of policy rate cut continue to be our base case scenario for 2016."

RBI is scheduled to unveil first bi-monthly monetary policy for 2016-17 on April 5.

The Central Bank today left the key policy rate unchanged but indicated at accommodative stance, saying with inflation moving closer to the target there would be more room for rate cut to support growth.

The repo or short-term lending rate remains unchanged at 6.75 percent and the reverse repo rate at 5.75 percent.

On liquidity, Bhattacharya said there remains a concern with systemic liquidity deficit well in excess of the prescribed 1 per cent total deposits currently.

It looks like the RBI will look at the Union Budget in February for signs of continued fiscal consolidation before further rate cuts, said Mihir Vora, Chief Investment Officer of Max Life Insurance.

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