Speaking at an event in Mumbai, Gokarn said that RBI should not do anything that provide some short-term stimulus to growth that would raise the risk of longer term inflation. "One action is not necessarily going to make the difference. But there are risks associated as well" he said, underlining that inflation was a critical concern.
Subbarao said in Kolkata on Thursday after the central board meeting of RBI that: "We are expecting that inflation will trend down starting the fourth quarter. As we go into our mid-quarter policy on December 18 and the quarterly policy on January 29, we will take into account the growth-inflation trajectory and calibrate our monetary policy accordingly."
He said: "Growth has moderated certainly. Growth has come down from 8.5% and 6.5% in the last two years respectively to 5.5% and 5.3%."