Maintaining accommodative stance but also vigilant, says Raghuram Rajan

There is room building up for banks for more rate cuts

Seeing weakness in areas of economy mainly in agriculture

To put our new methodology for base rate

-We are focusing on transmission and have barely seen half the rate cuts since January

-US Fed not central factor in our deliberations

-Hope See an uptick in inflation till December

-Economic growth projection retained at 7.4%

-Will use space for further accommodation

-It is very clear that we are in midst of recovery

On Accomodation, impact of 7th Pay Commission: In the broad sense there is going to be external expenditures but we don't feel it will impact the fiscal health a lot.

During normal times we would stick to policy dates for rate action.

As far as when the next rate movement would take place, I can say when times are unwarated we are prepared to move off cycle.

On future stance on transmission and rate cut: We are accomodative but also vigilant on inflation. There are both upside and downside risk to consumer price inflation.

Rajan begins taking question after the press briefing

RBI governor set to talk to media