The RBI's six-member monetary policy committee is expected to cut the repo rate by 25 basis points, after a similar reduction in February, all the 10 respondents of the Business Standard poll said.
The RBI will announce the review of the policy meeting on Wednesday, April 9.
A softening retail inflation rate, which eased to a seven-month low of 3.61 per cent in February, down from 4.31 per cent in January, as food prices softened, has bolstered hopes for a second consecutive interest-rate reduction.
"The path for further policy easing appears quite clear and straightforward, with growth likely to be seen in a range which is deemed non-inflationary," said Rahul Bajoria, head of India and Asean Economic Research, BofA Global Research.
Interestingly, the retail inflation rate is seen not exceeding 4 per cent for several months, raising hopes for deeper cuts to support growth. According to Soumya Kanti Ghosh, group chief economic advisor, State Bank of India, the retail inflation rate is likely to print below 4 per cent "for several months running into possibly Q3'.
"Pressure on the exchange rate is coming down substantially," Bajoria said.
The rate-setting panel had kept the rate unchanged in 11 consecutive meetings.
Anjali Kumari, Business Standard