As the inflation rate has come down, a reversal of interest cycle is much expected. A pre-policy meeting is scheduled for today, to discuss various issued ahead of the monetary policy review due on 24th January.

In the meeting the banks are likely to put forward their opinion about lowering of policy rates. The meeting will be chaired by Subir Gokam, Deputy Governor of RBI.

The Chairman and Managing Director of Canara Bank, Mr. S. Raman said, "A 25 bps rate cut could make a lot of difference to improve the sentiments in the economy, which has been low for quiet some time now."

He also said, "A rate cut is one of the measures that will help revive sentiments in the economy. It may be a signal of other things to follow."