“We are examining the data on a constant basis, both international developments as well as domestic developments,” Mr Rakesh Mohan told reporters at the sidelines of a cultural function.

India’s annual inflation rate jumped to a three-year high of 7 percent on March 22, and money market traders have been speculating on monetary tightening moves by the central bank such as an increase in the cash reserve ratio. “These are important issues which need to be analysed and examined very carefully which is what we are engaged in doing,” Mr Rakesh Mohan said. “The appropriate response and analysis will be available on April 29,” the RBI Deputy Governor said.