Finance Minister P Chidambaram has said inflation in India, which remained at a three-month-high of 5.16 per cent in the first week of October, is "pretty much contained".
Inflation can be kept below five per cent, he told reporters after delivering a speech at Stanford University in California on Tuesday.
On interest rates, he said: "Speaking generally, I think that industry would be very happy with benign interest rates." The Finance Minister declined to comment on the current level of RBI rates, a Bloomberg report said.
The three-month-high inflation rate of 5.16 per cent has put pressure on RBI to increase interest rates.
The central bank is slated to come out with the quarterly review of its credit and monetary policy on October 31.