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.

“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.