New Delhi, April 1 -- There is now an overwhelming consensus in financial markets that the six members of the Monetary Policy Committee of the Indian central bank will vote to reduce policy interest rates once again at their next meeting later this month. There is ample reason for them to do so. Inflation has been receding for four months in a row. The latest reading of the price gauge shows that inflation is slightly below the inflation target right now.

The Reserve Bank of India (RBI) had held monetary policy too tight through much of the past three quarters, at a time when low core inflation was signalling weak demand conditions in the Indian economy, while high food prices were stoking fears that these could spill over into other par...