In April, the RBI is expected to lower the repo rate by 25 basis points.

According to a survey of 21 economists, treasury heads, and fund managers, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is expected to lower the repo rate by 25 basis points (bps) in its next monetary policy meeting on April 9.

Lower Consumer Price Index (CPI) inflation, according to experts, enables the MPC to concentrate more on growth in the face of global uncertainty and opens the door for another rate decrease, which will increase demand in the current environment.

"We anticipate that the MPC will turn its attention from worries about inflation to promoting growth. Accordingly, the MPC is likely to maintain its neutral posture in the face of global headwinds and carry on the rate-cutting cycle that started in February, lowering the repo rate by an additional 25 basis points at the April MPC meeting, according to a study by CareEdge.

Despite a number of RBI-announced steps, the central bank will continue to prioritize liquidity management, treasury heads noted. However, the liquidity imbalance decreased this week, which also contributed to an easing of money market rates.