New Delhi, April 8 -- The Reserve Bank of India's (RBI) repo rate is expected to drop by 25 basis points (bps) to 6.00 per cent after the ongoing Monetary Policy Committee (MPC) meeting, according to Goldman Sachs.

"We expect a 25bp repo rate cut from the RBI Monetary Policy Committee (MPC) at the April 9 meeting, taking the repo rate to 6.00 per cent," the report said, adding that it expects a 5.50 per cent repo rate by year-end.

The financial services company said that several factors have created a favorable environment for the RBI to ease the policy rates.

It points out that the domestic economic activity showed signs of moderation in the first quarter, as indicated by high-frequency data.

Inflation is expected to remain benign, w...