On Wednesday, RBI will cut the rates today, as well review the April policy in order to reverse the impact of the demonetization and give hope to operate growth, said foreign brokerage Bank of America Merrill Lynch.

He said, "We continue to expect the RBI-MPC (monetary policy committee) to cut the rates by 0.25 percent on Wednesday and in April with demonetization hurting growth".

According to the report, 60 percent of 2000 respondents is affected by the note ban and lower the growth by 5.6 percent in November.

This taking in mind Banks and industry are trying to cut in benchmark repo rate. On February 8, the six-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel may adopt a cautious approach and also view the crude oil prices.

Due to note ban growth prospect tend to 0.25-0.50 per cent according to economic survey.

Other rates that Finance Minister Arun Jaitley is cutting the fiscal deficit to 3.2 percent for next year.

The brokerage also said, it expects inflation to come down to 4.1 percent by March, which is 0.50 percent lower than the previous estimate of 4.6 percent.

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