According to a new survey, leading economists believe that the inflation based on the Wholesale price index might have fallen slightly to the level of 6.7 per cent compared to 6.95 per cent that recorded in February.

The new poll of 30 economists conducted by Reuters showed that they expect the headline inflation to be at 6.7 per cent for March, year on year. The inflation in the country started moderating in November after staying above 9 per cent for a year. The inflation had fallen to a 26-month low of 6.55 per cent in January.

RBI's deputy governor Subir Gokarn had earlier indicated that RBI's stand on monetary policy will depend on the level of oil prices in the international markets and the domestic economic growth rates.

Experts say that the central bank will announce a reduction in its repo rate even as high oil and food prices continue to put pressure on inflation. The RBI has not changed its key lending rates since its policy review in mid-December. It had increased the rates 13 times since March 2010 in order to control the stubborn inflation in the country. The last cut in the repo rate was in April 2009.

The growing furl prices in the international market has resulted in continued pressure on inflation for the country, which is heavily dependent on imports for meetings its fuel requirements. Experts point out that increase to the service tax by the government in its March Union Budget has also impacted the inflation.