The Reserve Bank of India (RBI) Governor has said that the RBI has not completely shut its door on rate cut.
Observing that he had cut benchmark lending rate by 0.25 per cent earlier this week despite several risks, the RBI chief said that future policy action would be contingent on domestic and global factors.
The RBI had earlier this week cut the repo rate by 25 basis points to 7.25 per cent. This was the third cut by the country's central bank this year.
"Growth is very weak, but we also have inflation mandate that we have to respect and we are trying our best in doing as much as for growth given the inflation mandate," Rajan told India Today TV channel.
"If you have a weak monsoon and if you have the appropriate policy reactions and that is something we have to wait and see. We have included some of the estimates we believe, a reasonable estimate.
But if the action is very vigorous or the monsoon is much stronger than the forecast that will obviously create more policy room for us to act," he said.