One reason the RBI had put rate cuts on hold in last two policy announcements was the sharp spike in inflation. For the month of February, CPI inflation has come down sharply from 7.59% to 6.58%. While it is still above the RBI outer limit of 6%, the fall is a good sign that inflation may be on the right path. Also, the big trigger for lower inflation has come from a sharp fall in food inflation that has fallen from 13.2% to 10.4%. That certainly gives breathing room for the RBI to cut rates for a start and then wait for further inflation data to follow up. The bumper Rabi crop and weak crude prices should also work in favor of lower inflation.