That is hard to say but based on the market expectations, it could be in the range of 20 to 25%. The RBI cut the rates by 35 bps in the August policy and that was the fourth consecutive cut in rate. Hence the RBI may go a little conservative this time around. Also the government has just given a boost by cutting the rates of tax from 30% to 22% and hence the RBI will be in a position to go a little slow on rate cuts.

However, it does look like there will be a rate cut. In the last policy also the RBI had underlined that it would cut rates to give a boost to growth. With the core sector growth for August coming at (-0.5%), there is an urgent need for a rate cut. Hence the RBI is most likely to cut rates although the quantum of cut will be lower than the August cut.