“The RBI has already embarked on a rate cutting cycle and is likely to go in for another 25 basis points reduction in the April monetary policy committee meeting, taking the repo rate to 6 per cent,” HSBC Research said.

After the decline in retail inflation in February to 3.6 per cent, the March inflation print is also trending below the RBI's 4 per cent target which is likely to lead to another rate cut by the central bank next month,

The RBI’s recent repo rate cut to 6.25% is expected to lower borrowing costs for personal and home loan borrowers. Several banks have already revised their interest rates, making loans more affordable for consumers.