Finance minister said on Tuesday the RBI's decision to leave all interest rates unchanged at a review marked a "standstill" policy that could be calibrated later to meet global developments.
Palaniappan Chidambaram said the government would discuss with the central bank further policy actions that could be taken at the next review in April.
"I endorse the stance taken by the RBI. The current stance is standstill with flexibility to move either way depending on emerging economic situations," he told reporters.
India's central bank left its key lending rate steady at 7.75 percent at a policy review on Tuesday as inflation risks persisted. But the bank said it stood ready to act if turbulence on global markets threatened growth and financial stability.
The central bank left all other rates and the cash reserve ratio (CRR) unchanged.
(Reporting by Surojit Gupta and Unni Krishnan, Editing by Mark Williams)