RBI may cut interest rates in April, economists predict

Economists predict the Reserve Bank of India (RBI) may cut interest rates by 25 basis points in April, following a drop in retail inflation to 3.61% in February. This is below the RBI's target for the first time in seven months. An ET poll indicates that many economists expect an additional rate cut in June. Rising farm output is expected to stabilize food prices, contributing to the outlook for lower rates. Currency markets are responding, with the rupee appreciating against the dollar. The RBI has also taken steps to ease liquidity in the banking system, signaling a potential reduction in borrowing costs.