"Growth has moderated certainly. Growth has come down from 8.5 per cent and 6.5 per cent in the last two years to 5.5 per cent and 5.3 per cent (in the last two quarters)," Subbarao told reporters after the RBI's central board meeting here.
He said: "We in the RBI are always trying to manage the balance between growth and inflation. The fall in growth to 5.3 per cent in the last quarter is a steep moderation."
Subbarao said that at the same time, inflation is still high.
"Inflation has come down from its peak. At 7.5 per cent, inflation is still high. We are expecting that inflation will trend down in the last quarter of the current fiscal," he said.
"And, as we go into our mid-quarter policy on December 18 and quarterly policy on January 29, we will take into account the growth-inflation trajectory and calibrate our policy accordingly," the RBI governor said. (MORE)
