"Comparing the drivers of inflation between the two cycles we see that domestic factors are moving along similar lines as in the 2003-05 cycle and decline in global commodity prices are an added support in the current cycle," he said.
The firm has forecasted a sustainability lower inflation path of 5 percent to be achieved from April, and expects inflation to decelerate to 4.75 percent by December this year.
"Based on our expectation of the inflation trajectory, we believe the Reserve Bank (of India) could lower rates by a further 75-100 bps in 2015. Also we believe deposit rates are to decline significantly and more than policy rates," he said.
According to the company, while the growth rate exceeded nine percent and averaged at 7.9 percent, inflation remained stable and low averaging at four percent with food inflation averaging 3.2 percent and non-food inflation averaging 4.5 percent.