The meeting is held in the back drop of international crude oil prices crossing $120 a barrel and inflation crossing the 7.5 per cent mark.
Like other central banks, the Reserve Bank is also concerned that spurt in food, commodity and oil prices coupled with fears of US recession could fuel inflation and slow down the economic growth.
RBI Governor Y V Reddy and Deputy Governor Rakesh Mohan are also expected to deliberate on the impact of recent policy measures announced by the central bank.
Sources said the Board could also consider some additional monetary measures to tame inflation and also temper the inflow of foreign capital, as forex reserves have touched $310 billion.
Reserve Bank, in its annual credit policy announced last week, raised the percentage of cash that commercial banks must keep in reserve. It was the second time in less than two weeks that RBI raised the Cash Reserve Ratio to combat an average annual inflation rate of over 7.5 per cent.
