BofA Merrill Lynch Global Research said it ''continue to expect" the RBI to cut the key policy rate by 25 basis points in the February policy review.

The RBI will announce the Monetary Policy Review on February 2 by way of a press release, the Central Bank said in a statement.

In the last calender year, the RBI reduced key policy rates by 1.25 percentage points to 6.75 percent.

However, in the Fifth Bi-monthly Monetary Policy Review announced in December the Central Bank had left the key interest rate unchanged.

New president of industry body Ficci Harshavardhan Neotia had recently pitched for lower interest rates saying the cost of funds was high and further reduction in interest rate would help to propel investments.

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