It does look like the RBI may also go in for an emergency rate cut to battle the domestic slowdown and the business impact of the Coronavirus. Year 2020 began with the impact of the Coronavirus and that has hit global growth. IMF expects 30-40 bps to be shaved off. Indian GDP growth in the March quarter may also get affected as the Chinese pandemic hits everything from auto demand to pharma supply chains. With status quo in Dec-19 and Feb-20, RBI has the leeway to cut rates. But, above all, there is a huge yield gap. Indian bond yields have fallen to 6.18%, the lowest level in 12 years. However, the US bond yields have cracked to a 150-year low of 0.76%. That gives a 10-year bond yield spread of almost 5.42% against the historic spread of 400-450 basis points. With transmission mechanisms in place with the market benchmarking of loans, the RBI can even venture to go for an aggressive 50 bps rate cut. I will not be surprised if we see this rate cut sooner rather than later.