RBI Monetary policy will be announced on Thursday with the general consensus being that the RBI will cut rates by 25 basis points. The repo rates are currently at a level of 5.15% and it is expected that the RBI will cut the rates to the 4.90% level. This is likely to be driven by weak GDP numbers and negative growth in high frequency indicators like the IIP and core sector over the last two months. However, the RBI will also have to be cautious considering that the repo rates are already down 135 basis points since January 2019 and 285 points since January 2015. We may see a greater focus on rate transmission.