It was after 13 consecutive occasions that the Reserve Bank of India kept the policy rates unchanged in the last monetary policy review. The receding inflation rate has strengthened the speculations about deduction in the interest rates in the next policy review.

The Reserve Bank of India adopted to increase the interest rate to rein the rising inflation rates. It took a streak of 13 back-to-back hikes for RBI to witness softening of inflation rates.

The Head of Policy and Research at Dhanlaxmi Bank, Mr. Rajrishi Singhal said, "RBI may go for a rate cut but a lot will depend on the WPI inflation numbers that will come on January 16 ... It would not go for a rate hike again as the time for it has passed but it may not cut rates if prices of the non-food articles continue to rise."

The review of monetary policy is due for 24th of this month.