India's retail inflation fell below 4% in February for the first time in six months mainly due to a decline in vegetable prices, giving the central bank room to cut rates further in coming meetings. Annual retail inflation in February eased to 3.

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

The sharp decline in inflation has increased expectations for another rate cut by the RBI on April 9. If this occurs, it will mark the second rate reduction in just two months.