CPI is now well within RBIs main inflation target of 4%, warranting a possibility of yet another 25 bps rate cut from the central bank in the upcoming April 2025 policy. If that were the case, a repo rate cut would lead to further revision in home loan EMIs and fixed deposit rates by banks.

The CPI inflation print for February falls below the mid-point of the MPC's medium term target range, led by cooling in food inflation

Retail inflation in February dropped to a 7-month low of 3.61%. It remains within the RBI's target. Food inflation also saw significant reductions in both rural and urban areas. This decline may encourage the Monetary Policy Committee to cut the repo rate in April to boost GDP growth.