According to Moody's Economy.com, the economic research arm of consultancy Moody's, the central bank would keep monetary policy at the accommodative setting this fiscal to help the economy recover.

'Although the global climate is still a little unstable, cutting rates cannot help immediately boost domestic activity. Instead, policymakers are counting on previous rate cuts to influence market rates now,' said Sherman Chan, an economist at Economy.com.

'RBI will likely commence monetary tightening a year from now, as inflation may again emerge as a concern to policymakers.'

The wholesale price index is expected to return to positive territory by 2009-end as improving global economic conditions continue to put upward pressures on commodity prices, Moody's said.