“It was a regular meeting,” Rajan said after the meeting.
While most of macroeconomic indicators are showing signs of economic revival, food inflation remains slightly a concern area.
Retail inflation rose to 14-month high of 5.41 per cent in November on sharp pickup in food prices, posing a challenge to further easing of monetary policy by the Reserve Bank.
The wholesale price inflation, although in negative zone for the 13th consecutive month, also moved up to (-)1.99 per cent in November as food articles including pulses and onion turned costlier. It stood at (-)3.81 per cent in October.
India’s GDP growth rose to 7.4 per cent in July-September, outpacing China to become the fastest growing major economy.
While the gross domestic product or GDP of Asia’s third-largest economy expanded 7.4 per cent in the second quarter from 7 per cent in the previous quarter, growth rate of eight core infrastructure industries slowed to 3.2 per cent in October.
During the same quarter, the current account deficit (CAD) narrowed to 1.6 per cent of GDP at USD 8.2 billion mainly due to lower trade deficit.
With regard to fiscal deficit, the government has already announced its commitment to meet the target of 3.9 per cent for the current fiscal.
Taking into consideration various factors, RBI is scheduled to announce the bi-monthly monetary policy review for 2015-16 on February 2.