“While inflation at around 8 per cent in early 2015 seems likely, it is critical that the disinflationary process is sustained over the medium-term,” Rajan said.

The repo rate, or the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements, was left unchanged at 8 percent.

The reverse repo rate, or the interest that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, had been adjusted to 7 percent.

The Cash Reserve Ratio (CRR) was left unchanged at 4 percent. The marginal standing facility rate and the Bank Rate were also kept unchanged at 9 percent.

The statutory liquidity ratio (SLR), the mandatory amount of bonds lenders must keep with the RBI, was cut by 0.5 percent to 22.0 percent of their net demand and time liabilities (NDTL) with effect from August 9, 2014.

Care Rating said the RBI may not cut SLR Tuesday, but even such a cut would not come as a surprise.

“It (SLR cut) could probably be a part of the long term goal of lowering the SLR rather than a short term measure,” the agency said.

Indian Banks Association chief executive M.V.Tanksale said there was no need for an SLR cut because credit pick-up was slow and there was also no urgent need of liquidity.