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The Reserve Bank of India (RBI) will wait longer to see the monsoon's impact on inflation, even as initial rainfall has been good, Deputy Governor S S Mundra said on Friday.
RBI said at its June policy review that it would monitor the rains' impact on inflation to determine whether it cuts interest rates again, after easing by 75 basis points so far this year.
"It's just the beginning," Mundra said on the monsoon.
"So far, the trend looks good, but we need to wait some more time to see how it's progressing."
The RBI deputy governor was speaking on the sidelines of an industry event in Bengaluru.
Mundra also reiterated the central bank's concerns about the high level of bad loans among state-run banks and said that banks need to be careful regarding how they use the capital the government plans to infuse.
